Chinese Crackdown Crushes Bai Family’s Criminal Empire in Northern Myanmar

Chinese authorities have successfully dismantled a vast and violent criminal syndicate run by the notorious Bai family in northern Myanmar, exposing a network of online fraud, fake casinos, and drug trafficking that generated an astonishing RMB286 billion ($39.5 billion) in illicit profits while inflicting widespread human suffering. The crackdown, hailed as one of the most extensive cross-border enforcement actions in recent history, culminated in the arrests of 57,000 individuals linked to gambling and fraud crimes. The sweeping operation, carried out jointly by Chinese and Myanmar law enforcement agencies, delivered a crushing blow to Kokang’s so-called “Four Major Crime Syndicates.”

At the heart of the criminal web was the Bai family, led by Bai Suocheng, who for nearly a decade wielded political and military influence in the Kokang region to construct a sprawling empire of scams and illicit enterprises. Their operations included 41 enormous scam and gambling compounds, among them the infamous Cangsheng Tech Park and Wangzhe Honglou—translated as King’s Red Mansion—where victims were systematically exploited through investment fraud, impersonation of law enforcement, and rigged online gambling platforms.

The Bai syndicate maintained a brutal regime. Beyond financial crimes, their private militia operated with impunity, enforcing control over the compounds with violence. Workers who failed to meet targets were subject to beatings, torture, or execution, and Chinese nationals were routinely trafficked into forced labor. The family sought to provide a facade of legitimacy by forming the Kokang Entertainment Management Committee, which levied “protection fees” from scam dens while overseeing what appeared on the surface to be legal entertainment businesses.

A major investigation launched in 2023 by China’s Ministry of Public Security led to the identification and arrest of the syndicate’s senior leadership, including patriarch Bai Suocheng, his son Bai Yingcang, and daughter Bai Yinglan. The trio, along with 36 other top suspects, were apprehended and extradited to China. In a series of coordinated raids across Myanmar’s volatile northern territories, Chinese task forces uncovered shocking evidence of the syndicate’s brutality—including mass graves containing victims’ remains and a staggering cache of 11 tons of narcotics.

Prosecutors revealed that the Bai family's telecom fraud operations were responsible for over 31,000 cases, defrauding victims of more than RMB106 billion ($14.6 billion). On top of that, their illegal gambling activities funneled another RMB180 billion ($24.8 billion) through shadow financial networks, further destabilizing the region’s already fragile economy. The human toll was equally devastating. Six Chinese citizens were confirmed killed, while countless others were imprisoned, tortured, or forced to work in inhumane conditions inside the compounds.

“The Bai family turned northern Myanmar into a lawless playground for transnational crime. This operation demonstrates our unwavering commitment to protecting Chinese citizens from overseas fraud networks,” a Chinese official stated, underscoring the geopolitical importance of the crackdown.

The case serves as a high-profile milestone in China’s intensifying campaign against cyber-enabled crime networks, particularly those operating across borders. It also brings to light the escalating threat posed by criminal syndicates in Southeast Asia that have transitioned from traditional illegal gambling into an array of financial and cybercrimes. A recent report by the United Nations Office on Drugs and Crime (UNODC) emphasized this trend, warning that organized crime groups in the region have rapidly diversified their operations, capitalizing on unregulated digital spaces to fuel a growing underground economy.

With the Bai family's leadership dismantled and thousands of their operatives now in custody, China has struck a decisive blow against one of the most entrenched and dangerous transnational crime empires in the region. However, the depth of the network and the scale of its crimes highlight the ongoing challenges in confronting the entanglement of politics, violence, and digital fraud in Southeast Asia’s lawless frontiers.

By fLEXI tEAM