U.S. and China Intensify Parallel Crackdowns on Expanding Southeast Asian Scam Networks

The United States and China have each rolled out major enforcement offensives aimed at sprawling criminal networks that have turned parts of Myanmar, Cambodia, Laos, and Thailand into entrenched hotspots for online scams and illicit gambling. These areas—now deeply embedded in operations powered by forced labour, digital fraud, and crypto-enabled money flows—have become focal points for both countries as they escalate efforts against transnational crime.

In one of its most sweeping actions to date, the U.S. government seized $13.4 billion in bitcoin, marking one of the largest digital-asset confiscations in American history. Prosecutors contend the funds stem from scam-compound ecosystems reliant on trafficked workers coerced into conducting online fraud, although business entities linked to the case firmly deny those allegations. At the same time, Washington has unveiled a dedicated Scam Center Strike Force to confront the surge in crypto-investment fraud—an area U.S. officials say drains nearly $10 billion each year from American victims.

China has been moving in parallel, expanding its own enforcement posture across the region. Beijing recently secured custody of She Zhijiang, whom authorities accuse of orchestrating illegal gaming networks and scam operations, and has stepped up joint initiatives with neighbouring police forces. As China pushes harder against telecom fraud, underground casinos, and crypto-based laundering networks, its law-enforcement agencies are increasingly coordinating regional crackdowns despite overarching geopolitical strains with Washington. Both governments acknowledge that no single jurisdiction can meaningfully counter illicit financial systems without some form of cross-border alignment.

Industry observers warn that these syndicates now generate approximately $39 billion every year, undermining regulated markets and eroding the credibility of legitimate gaming operations. Stephen Crystal of SCCG Management emphasized that “only joint intelligence sharing, sanctions, and blockchain tracking can disrupt the liquidity that sustains these criminal structures,” underscoring the scale of cooperation required to dent their revenue streams.

Although sustained, formal cooperation between the U.S. and China remains improbable, their simultaneous enforcement pushes could compel Southeast Asian governments to step up their own policing. Should these actions continue, they may reshape the operational environment for illicit gambling and scam enterprises—and influence how global regulators respond to evolving digital-crime ecosystems.

By fLEXI tEAM