The US and China have launched significant parallel actions targeting networks that have transformed parts of Myanmar, Cambodia, Laos, and Thailand into major scam and illegal-gaming hubs. These regions have become central to operations involving forced labour, online fraud, and crypto-driven financial crime. The US recently conducted one of the largest digital-asset seizures in its history, confiscating $13.4 billion in bitcoin tied to alleged scam-compound activities. Prosecutors argue that the funds were linked to operations exploiting trafficked individuals for online fraud, although corporate interests connected to the case deny those claims. The US has also established a Scam Center Strike Force dedicated to tackling crypto-investment fraud, which reportedly costs Americans nearly $10 billion annually.
China is simultaneously increasing its enforcement footprint. Beijing recently secured the extradition of She Zhijiang, a figure accused of running illegal gambling platforms and scam operations. China has also accelerated collaboration with regional police forces as it targets telecom fraud, underground casinos, and digital-asset laundering. Officials from both nations acknowledge that combating illicit finance requires cross-border coordination, even amid broader geopolitical tensions.
Industry experts highlight that these networks now generate an estimated $39 billion annually, creating substantial risks for regulated operators and weakening the integrity of legal gaming markets. SCCG Management’s Stephen Crystal noted that only joint intelligence sharing, sanctions, and blockchain tracking can disrupt the liquidity that sustains these criminal structures.
While formal long-term cooperation between Washington and Beijing remains unlikely, their simultaneous actions may pressure Southeast Asian governments to intensify enforcement. If continued, these efforts could significantly alter the landscape of illicit online gambling and scam operations, with broader implications for global regulatory frameworks.
