A nationwide crackdown on illicit cyber scam and gambling operations has led to sweeping arrests across Myanmar, as international pressure mounts from both the United States and China to dismantle the multibillion-dollar industry.
Regime media reported on Monday that authorities arrested 86 Chinese and five Myanmar nationals between May 4-9 in southern Shan State’s Laihka and Mong Pan townships.
Locals told DVB on the condition of anonymity that the raids underscore how deeply rooted the transnational cybercrime networks have become within the state.
Raids in Shan State
The Shan State operations targeted two compounds in Laihka’s Sisaw village, located along the Kengtung-Mong Pan road.
Authorities retrieved 14 computers, 90 mobile phones, and other electronic equipment. The regime stated that all 91 individuals arrested will face legal action.
Among those detained over the five-day period, 52 Chinese and four Myanmar nationals were arrested on May 4 in Mong Pan.
The township serves as the headquarters for the ethnic armed group the Restoration Council of Shan State (RCSS), which had previously pledged in January 2024 to eradicate online scam centers, drugs, and human trafficking networks within its territory.
The latest arrests follow a similar raid in Tachileik on April 27, spurred by a tip-off from local residents two days prior.
Authorities detained 52 alleged scam workers, including 12 Chinese nationals, and confiscated a massive haul of electronics: 320 mobile phones, 108 tablets, 13 laptops, three computers, and six Wi-Fi routers.
Scams spread to Yangon?
While the borderlands remain the epicenter of the crisis, there are growing concerns that the scam industry has penetrated Myanmar’s largest cities.
Recent reports accused the Golden Butterfly Hotel in Yangon’s Bahan Township of harboring cyber scam operations within its walls.
The hotel is owned by Yaw Satt, a Myanmar businessman with ties to the regime in Naypyidaw and the former chairperson of the Myanmar Ethnic Entrepreneurs Association (MEEA).
The hotel manager denied the allegations on April 27. Notably, the hotel is known to regularly host regime officials and RCSS Chairperson Yawd Serk during their visits to the commercial capital.
The fall of Shunda Park
The domestic raids coincide with aggressive legal action from the United States. The U.S. government estimates that Americans lost over $7.2 billion USD to Southeast Asia-based scam operations in 2025 alone.
On April 23, the U.S. Department of Justice charged two Chinese nationals, Huang Xing Shan and Jiang Wen Jie, for allegedly managing the notorious Shunda Park cyber scam compound in Myawaddy Township’s Min Let Pan village, located in Karen State along the Thai border.
“We have charged the Chinese bosses who ran a scam compound in Burma, where trafficked workers were beaten and forced to steal from Americans,” Jeanine Pirro, the U.S. Attorney for the District of Columbia, announced during a press conference in Washington.
“The kind of fraud perpetrated at Shunda Park compound… is expanding quickly and among the most financially devastating cybercrimes, costing Americans billions of dollars in losses.”
Both suspects were arrested by Thai authorities on immigration charges earlier this year, according to the Associated Press.
Shunda Park, which had operated under the protection of the pro-regime Democratic Karen Benevolent Army (DKBA), was ultimately seized in November 2025 by the Karen National Liberation Army (KNLA) during fierce clashes.
The U.S. State Department has also offered a $10 million USD reward for information leading to the seizure or recovery of funds related to the “Tai Chang” scam centers, which operate from Karen State and primarily target American citizens.
Diplomatic pressure
The military regime in Naypyidaw continues to face intense pressure from its neighbours to clean up the border regions.
On April 25, China’s Foreign Minister Wang Yi met with regime leader Min Aung Hlaing to directly discuss border stability and bilateral cooperation in eliminating the cybercrime syndicates.
