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OFAC Imposes Sanctions on Southeast Asian Cryptocurrency Crime Syndicates for Defrauding Americans of $10 Billion
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has declared sanctions against criminal entities in Southeast Asia that have drained more than $10 billion from American citizens, as indicated in a recent press release from the U.S. Department of Treasury.
OFAC Acts Against Southeast Asian Digital Asset Fraud
As per the press release dated September 8, OFAC has imposed sanctions on nine targets located in Shwe Kokko, recognized as a “notorious hub for virtual currency investment frauds” in Burma.
Today, OFAC sanctioned Southeast Asian crypto scam networks responsible for $10B in American losses. 19 entities in Burma and Cambodia were targeted for conducting “pig butchering” schemes that exploit both U.S. victims and forced laborers under the threat of violence.
We uncovered scam…— Chainalysis (@chainalysis) September 8, 2025
The agency also sanctioned four individuals and six entities for managing forced labor facilities in Cambodia, where workers are coerced into participating in digital asset investment scams “against victims in the United States, Europe, China, and beyond.”
“The cyber scam industry in Southeast Asia not only jeopardizes the financial security and well-being of Americans but also subjects thousands to modern slavery,” stated John K. Hurley, Under Secretary of the Treasury for Terrorism and Financial Intelligence.
“In 2024, unsuspecting Americans lost over $10 billion due to scams originating from Southeast Asia, and under the leadership of President Trump and Secretary Bessent, the Treasury will utilize all available resources to combat organized financial crime and safeguard Americans from the extensive harm these scams can inflict,” he continued.
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Cyber Scams Increasingly Worry U.S. Officials
The U.S. Department of Treasury reports that transnational criminal organizations are increasingly leveraging new technologies to perpetrate cyber scams against Americans.
In September 2023, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a warning regarding the rising concern over crypto-based “pig butchering” scams.
These scams, akin to fattening a calf before slaughter, involve fraudsters establishing deceptive relationships with intended victims to gain their trust – ultimately leading to access to their digital assets.
“The scammers then refer to “butchering” or “slaughtering” the victim after the assets are stolen, inflicting financial and emotional distress on the victims,” the alert partially states.
With the recent issuance of sanctions by OFAC, the Treasury is indicating that crypto-related scams associated with modern slavery are a significant national security concern.
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