Myanmar Proposes Death Penalty for Violent Crypto Scammers in New Anti-Scam Bill

Myanmar has proposed introducing the death penalty for violent criminals who coerce victims into operating crypto scam centers under its new Anti-Online Scam Bill.

Singapore-based news outlet CNA reports that draft legislation for the bill was published today. The proposed law states that the death penalty would apply to criminals who use violence, torture, unlawful arrest, detention, or cruel treatment to force individuals into committing online scams.

Legislation to Be Reviewed in June

The bill will undergo scrutiny when Myanmar’s military government, which seized power in a 2021 coup, resumes parliamentary sessions in June.

Military Raids on Scam Compounds: Publicity Stunts?

Recent raids on scam compounds, such as the KK Park facility near the Thai border, have been criticized as publicity stunts. Analysts and locals, including Myanmar Witness and The Irrawaddy, suggest the operations were primarily for show, featuring dramatic scenes of fleeing victims, arrests, and demolitions.

Life Sentences Proposed for Scam Operators

Local media reports indicate that individuals found running scam centers or engaging in crypto fraud could face life imprisonment. However, it remains unclear whether this penalty would extend to victims coerced into participating in scams.

Recent Policy Shift on Death Sentences

Just last month, Myanmar’s president Min Aung Hlaing commuted all existing death sentences to life imprisonment.

$1 Billion in Assets Frozen Linked to Alleged Scam Kingpin

The billion-dollar crypto scam industry has established numerous compounds along Myanmar’s borders and across Southeast Asia, including in Cambodia and Laos.

One of the most prominent figures in these operations is Prince Group CEO Chen Zi. Today, the Hong Kong High Court ordered the freezing of HK$9 billion ($1.15 billion) in assets under Chen’s ownership. Chen is currently detained in China after being extradited from Cambodia in January. He faces accusations of operating a vast criminal network that included crypto scam centers.

Scam Networks Tied to Regional Elites

Chen and his company were sanctioned by the US and UK last year, alongside another accused conglomerate, Huione Group. The financial arm of Huione Group, Huione Pay, had its bank license revoked last year due to its ties to the family of Cambodia’s political elite. Cambodia’s prime minister’s cousin reportedly owned a 30% stake in Huione Pay.

Additionally, Panda Bank, which shares senior leaders with Huione Pay, had its license revoked in February. Liquidators for Panda Bank announced yesterday that its mobile app will be removed from app stores.

Ongoing Crackdown on Crypto Scams

The proposed legislation and asset freezes reflect a broader regional effort to combat crypto scams, which have proliferated across Southeast Asia. Authorities continue to target both operators and financial networks linked to these criminal enterprises.