U.S. Sanctions Karen National Army for Running Crypto Scams and Human Trafficking Rings

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned the Karen National Army (KNA), a powerful militia operating along the Thai-Myanmar border, for its role in running crypto scams, human trafficking operations, and cross-border smuggling rings.

The group was officially labeled a transnational criminal organization, with sanctions also targeting its leader, Saw Chit Thu, and his two sons, Saw Htoo Eh Moo and Saw Chit Chit.

According to the Treasury Department, the group has benefited from ties to Myanmar’s military, which has enabled it to operate criminal enterprises with impunity. The KNA-controlled region near the border is now a well-documented hub for online fraud syndicates.

“Cyber scam operations, such as those run by the KNA, generate billions in revenue for criminal kingpins and their associates, while depriving victims of their hard-earned savings and sense of security,” said Deputy Secretary of the Treasury Michael Faulkender.

“Treasury is committed to using all available tools to disrupt these networks and hold accountable those who seek to profit from these criminal schemes.”

The sanctions were issued under Executive Orders 13581 and 14014, which target transnational crime and actors threatening the peace and stability of Myanmar.

Europe Had Already Moved Against Crypto Scams and Human Trafficking Rings

Prior to the U.S. action, the European Union had taken similar measures in October 2024, issuing sanctions against individuals and entities connected to the Karen Border Guard Force (BGF), including the now-sanctioned Saw Chit Thu.

The EU identified the Chit Linn Myaing (CLM) Group, founded by Saw Chit Thu, as a targeted criminal in operating scam compounds in Myawaddy, particularly in Shwe Kokko, a city that has bis known with transnational crime.

The EU report detailed how these compounds were linked to online fraud, drug and human trafficking, and serious human rights violations, including forced labor and torture.

Additional individuals sanctioned included Lt. Col. Mote Thun and Maj. Tin Win, both of whom were implicated in overseeing scam centers and profiting from criminal activity in the region. Asset freezes, travel bans, and restrictions on providing economic resources were imposed as part of the EU’s response.

U.S. Treasury Targets Houthi-Russia Supply Chain Fueling Red Sea Attacks

Also, similarly on April 2, 2025, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned a network of Houthi financial operatives linked to Sa’id al-Jamal, a key Houthi financier backed by Iran’s Islamic Revolutionary Guard Corps-Quds Force (IRGC-QF).

The network had facilitated the purchase of tens of millions of dollars’ worth of commodities from Russia, including weapons, sensitive goods, and even stolen Ukrainian grain, which were routed to Houthi-controlled areas in Yemen.

OFAC also flagged eight digital asset wallets used by the group to fund their operations. According to Treasury Secretary Scott Bessent, the Houthis depended on al-Jamal’s network to keep their war efforts alive.

The sanctions followed a series of Houthi attacks in the Red Sea involving missiles, drones, and naval mine actions that endangered international shipping and caused civilian casualties and major economic disruption.