U.S. Sanctions Escalate Against Shwe Kokko Scam Hub: Exposing KNU’s Shadowy Links to Saw Chit Thu
On September 8, 2025, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) announced sanctions against nine individuals and entities tied to the cyber scam hub in Shwe Kokko, Karen State. This crackdown is part of Washington’s broader campaign to dismantle Southeast Asia’s billion-dollar scam industry that cost Americans over US$10 billion in 2024.
While the sanctions primarily targeted the Karen State Border Guard Force (BGF)/Karen National Army (KNA) and their Chinese partners, a deeper look reveals that the Karen National Union (KNU)—long regarded as the political representative of the Karen cause—has also been entangled in these operations. High-level KNU leaders, including Padoh Kwe Htoo Win and Padoh Roger Khin, were directly connected to KK Park, a project overlapping with the same scam ecosystem cultivated by BGF leader Brigadier General Saw Chit Thu.
The Growing Cybercrime Crisis in Southeast Asia
The U.S. government has characterized cyber scams in Myanmar, Cambodia, and surrounding regions as a regional criminal enterprise that has metastasized into a global financial threat.
At least US$10 billion lost in 2024 by Americans alone—a 66% rise over 2023.
Victims lured by fake job postings were coerced into working in scam compounds, subjected to forced labor, violence, and modern-day slavery.
Scam centers often coupled online fraud with gambling, prostitution, money laundering, and trafficking, making border regions like Shwe Kokko synonymous with organized crime.
Shwe Kokko: Scam City at the Border
Shwe Kokko was initially promoted as a “Yatai New City” luxury project, led by Chinese-Cambodian businessman She Zhijiang. However, under the protection of Saw Chit Thu’s BGF/KNA, it became a fortress for cybercrime.
She Zhijiang, the project’s developer, is now jailed in Thailand.
The BGF/KNA provided security, utilities, and protection for the compounds.
International watchdogs describe Shwe Kokko as a criminalized development zone, fueled by transnational money flows and militia control.
The KNU–Chit Thu Nexus
Although the KNU and BGF are often portrayed as rivals, evidence shows key KNU leaders were directly tied to projects linked to Saw Chit Thu’s network:
KK Park Contract Signatures
Padoh Kwe Htoo Win and Padoh Roger Khin were documented as witnesses for the lessor’s side on a KK Park land-lease contract involving Trans-Asia International Holdings, a firm linked to the scam economy.
Their signatures appeared on behalf of the KNU Finance Committee (Central).
Groundbreaking Ceremony
Both men attended the February 2020 groundbreaking ceremony for KK Park, providing political cover to a project now identified as part of the border scam network.
Public Meetings with BGF
Meeting records show Saw Chit Thu and KNU leaders together, with Chit Thu referring to them as “teachers and parents,” highlighting transactional proximity despite political rivalry.
Revenue-Sharing and Political Cover
Reports suggest portions of scam hub profits filtered back into KNU-linked business structures, while the KNU tolerated Chit Thu’s ventures in exchange for resources and local authority.
This arrangement provided legitimacy and protection that shielded scam hubs during their expansion.
Key insights specifically focusing on property connections between Saw Chit Thu’s network and KNU leaders (Padoh Kwe Htoo Win and Padoh Roger Khin):
Location and Context
The contract is dated February 17, 2020, and concerns land in Mae Htaw Tha Lay Village, Myawaddy Township, Karen State, which is within the same border zone as Shwe Kokko—the epicenter of the cyber scam operations run by BGF/KNA under Saw Chit Thu’s control.
This area has been widely reported as part of the economic development belt controlled by the BGF, serving as a satellite zone feeding Shwe Kokko’s scam empire.
Property and Business Arrangement (KNU Documents)
First Party (Lessor):
Mu La Ei Ahlin Co., Ltd — described as a company owned by the KNU organization under the KNU Central Finance Committee.
Representatives:
Saw Win Kyaw (Managing Director)
Saw Kyaw Thu (Director)
Second Party (Lessee):
Naing Kyar Moo Sawan, a Thai national, representing:
Trans-Asia International Holding Group
Huanya International Holding Group
These two companies are known from independent reports to be deeply intertwined with BGF/KNA operations and Shwe Kokko scam networks.
The contract leases approximately 100 acres of land for 30 years, at 35,000 baht per acre per year (≈3.5 million baht annually).
Requires construction of resorts, hotels, healthcare facilities, import/export and industrial operations—matching the development profile used to launder scam-related capital and infrastructure investments tied to BGF’s Shwe Kokko city.
KNU Leaders’ Direct Involvement
Listed as official witnesses on behalf of the KNU Finance Committee (Central):
Padoh Kwe Htoo Win — Team Leader, KNU Finance Committee (Central)
Padoh Saw Roger Khin — Member, KNU Finance Committee (Central)
This shows formal participation and approval from the KNU’s highest financial leadership in the land deal.
The contract also states the Mu La Ei Ahlin company is owned by the KNU and will coordinate land acquisition and development, meaning the land is legally tied to the KNU’s central economic arm.
Connection to Saw Chit Thu and BGF
Trans-Asia International Holding Group and Huanya International Holding Group, named in this contract, are well-documented as part of the corporate web operating inside Shwe Kokko under protection of BGF Commander Saw Chit Thu.
These groups are partners or feeder entities for the Yatai New City project led by She Zhijiang, which was enabled and protected by Saw Chit Thu’s BGF.
By granting 100 acres of KNU-controlled land to these same companies, this contract effectively:
Facilitated the territorial expansion of the BGF-aligned scam empire, and
Integrated KNU-controlled land and personnel into the scam economy footprint.
Structural Implications
The contract creates a joint committee of 8 members (4 from each side) to manage and negotiate business activities on the land.
This represents a formal governance-sharing arrangement between KNU’s finance arm and BGF-linked companies, which implies a power-sharing overlap between the KNU and Saw Chit Thu’s network in this economic zone.
This contract is direct documentary evidence of:
Property-based collaboration between the KNU leadership and companies embedded in Saw Chit Thu’s scam network, and
Formal KNU authorization of a project that became part of the Shwe Kokko-centered criminal economy.
It demonstrates how KNU leaders Kwe Htoo Win and Roger Khin were not merely aware but signatory witnesses to a project that tied KNU-controlled property to the BGF/Chit Thu scam ecosystem—blurring the line between political insurgency and organized crime business ventures in Karen State.
U.S. Sanctions: Who Was Targeted
OFAC’s sanctions from May and September 2025 designated:
She Zhijiang – Chinese-Cambodian tycoon behind Yatai New City.
KNA/BGF Commanders – Brigadier General Saw Min Min Oo and Major Saw Tin Win.
Saw Chit Thu-Linked Companies – Chit Linn Myaing, Myanmar Yatai International Holdings, and Shwe Myint Thaung Yin Manufacturing and Trading.
KNA itself was branded a transnational criminal organization in May 2025, along with Saw Chit Thu and his two sons.
These sanctions freeze assets, cut off U.S. system access, and sever international partnerships, aiming to choke the scam hubs’ financial lifelines.
Broader Implications: Karen Politics and Criminal Economies
The revelations connecting KNU leaders to scam projects deepen divisions within the Karen movement:
Corruption and Legitimacy Crisis: KNU’s involvement, even if indirect, undermines its credibility as a representative of Karen self-determination.
Internal Resistance: Reformist Karen leaders, such as General Nerdah Bo Mya, have condemned the corruption and ties with Chit Thu.
Civil Society Backlash: Karen community groups have demanded accountability from KNU’s Central Executive Committee, citing Roger Khin’s presence at project events.
KNU Denials: In 2023, the KNU officially refuted involvement in scam hubs, but contracts and photographs contradict these claims.
The Dual Focus: Fraud and Forced Labor
U.S. officials stressed that these scam hubs are not only financially predatory but also humanitarian catastrophes:
Workers trapped in scam centers faced violence, forced prostitution, and trafficking.
Reports document modern slavery conditions, with thousands of trafficked victims across Southeast Asia.
Sanctions are positioned as both economic disruption and human rights defense.
Strategic Clampdown
The U.S. sanctions strategy aims to:
Cut off funding to individuals and entities tied to scam hubs.
Expose political cover, including KNU links to projects like KK Park.
Deter militia-backed business partnerships by highlighting reputational costs.
Support regional cooperation between Thailand, ASEAN, and international watchdogs.
Conclusion
The U.S. sanctions against Shwe Kokko and Saw Chit Thu’s network represent more than a financial strike—they shine a light on how the Karen political movement has been compromised by criminal partnerships.
By linking KNU leaders such as Kwe Htoo Win and Roger Khin to scam projects, Washington’s actions highlight a deeper tragedy: the Karen struggle for autonomy has been co-opted by profit-driven alliances with organized crime.
Unless the KNU decisively severs ties with scam-linked figures, it risks losing both legitimacy and the moral foundation of its political cause.
References
Reuters, U.S. sanctions billion-dollar cyber scam networks in Myanmar and Cambodia, Sept. 9, 2025.
U.S. Treasury Department, Press Release on Sanctions Against Southeast Asia Scam Hubs, Sept. 8, 2025.
U.S. State Department, Statement on Online Scam Centers in Southeast Asia, Sept. 2025.
Eurasia Review, U.S. Sanctions Southeast Asian Networks Targeting Americans with Cyber Scams, Sept. 9, 2025.
CryptoRank News, U.S. Cracks Down on Southeast Asia’s $10B Scam Hubs, Sept. 2025.
AP News, U.S. Designates Karen National Army as Transnational Criminal Organization, May 2025.
The Irrawaddy, Contracts Reveal KNU Involvement in Notorious Myanmar Scam Center, Apr. 3, 2024.
The Irrawaddy, Karen Anger Over KNU Meeting With Myanmar Regime-Allied Militia, Mar. 14, 2023.
The Irrawaddy, KK Park Groundbreaking Ceremony Coverage, Feb. 2020.
Myanmar Peace Monitor, Karen Armed Groups Leaders’ Meeting, Jun. 2021.
Business & Human Rights Resource Centre, Chinese Firms Associated With Criminal Networks Partner with Local Armed Groups (Huanya/Trans-Asia), 2024–2025.
Justice For Myanmar, Who Powered the Expansion of Cyber Scams in Myawaddy?, Mar. 4, 2025.
East Asia Forum, Crime Networks Persist on the Thai–Myanmar Border, May 22, 2025.
Karen News, KNU Refutes Involvement in Illegal Gambling New City Project, Mar. 1, 2023.
