By Levina

An year after we posted on Pig Butchering scam, there have behemoth backlash faced by the scammers who lured people into a Crypto currency scam. In a sweeping crackdown on unlawful online scam operations, more than 40,000 Chinese nationals in Myanmar’s northern Shan state faced arrest and deportation over a three-month period from early September to mid-December. The startling revelation sheds light on a complex web of illicit activities, from cryptocurrency scams to human trafficking, that have affected not only the region’s security but also targeted hundreds of unsuspecting victims across the world, including Indians.

The Scale of the Operation:

Radio Free Asia compiled data from statements made by ethnic Wa and Kokang authorities in northern Shan state, the ruling military junta, and China’s Ministry of Public Security. This collaboration of information revealed the staggering number of arrests and deportations. A peculiar scam, known as the “pig butchering scam,” involves gradually luring victims into making increasing contributions in cryptocurrency to what appears to be a legitimate investment. The name draws parallels to the practice of fattening a hog before slaughter.

Cryptocurrency Scams and Human Trafficking:

Within the realm of dating apps, the phenomenon known as ‘pig butchering’ has become increasingly prevalent. In October 2023, a staggering 12% of Americans utilizing these platforms fell victim to this scheme, a stark rise from the 5% recorded in 2018.Victims find themselves entangled with fraudulent dating profiles, manipulated into forming emotional connections with perpetrators who skillfully coerce them into investing in cryptocurrency through scam-controlled websites. Once a significant sum is transferred, the perpetrator abruptly severs all contact, leaving victims in the wake of their disappearance. Ostensibly, a group highlighted in The New York Times specifically targeted Chinese women aged 30 to 50, with a preference for those who were already married.

Pic credit: Radio Free Asia

Origins and Operations:

This form of fraud originated in Southeast Asia and is typically carried out by victims of a fraud factory who are lured from abroad under false pretenses. Operating from areas outside central government control in Myanmar, especially in the town of Myawaddy in Kayin State near the border with Thailand, these gangs thrive in the midst of the ongoing civil war. The majority of those involved, both the gangs and the coerced individuals committing fraud, are ethnically Chinese.

Chinese Nationals and Myanmar’s Military Junta:

According to RFA, from October 31 to December 15, a staggering 12,050 Chinese citizens associated with online scam groups were arrested and deported, according to an announcement by Myanmar’s State Administration Council, the formal name of the military junta. Most of these individuals were operating in the Kokang region, whose predominantly ethnic Chinese population has been actively resisting the junta’s rule. China’s Ministry of Public Security reported the arrest of more than 31,000 Chinese nationals linked to online fraud gangs in northern Myanmar, including ringleaders, recruiters, and over 1,500 Chinese fugitives.

Indian Victims:

Notably, in November 2022, India formally raised concerns about the issue with Myanmar.Apart from the alarming involvement in drug-related activities, Chinese gangs were found targeting hundreds of Indians, enticing them to invest in cryptocurrency and ensnaring them in human trafficking rackets. Indians were being targeted under the garb of IT jobs. Close to 150 Indians were victims of it as per last years statistics.

The collective figures (of 40,000 Chinese nationals arrested) from various sources underscore the massive scale of the crackdown on Chinese nationals involved in online scam operations in Myanmar. The intricate web of cryptocurrency scams, human trafficking, and other illicit activities points to a broader challenge that extends beyond national borders. As authorities continue to grapple with these complex issues, the need for international cooperation becomes increasingly evident to curb such transnational criminal networks.