As scam operations proliferate in Southeast Asia, U.S. law enforcement is taking action to disrupt these illicit activities by targeting the infrastructure that supports them. Recently, the Justice Department issued seizure warrants for Starlink satellite internet terminals allegedly used by cybercriminals operating scam compounds in Myanmar. These warrants are part of a broader initiative aimed at combating cryptocurrency fraud that primarily exploits Americans.
Two warrants were authorized, with the first allowing the seizure of nine Starlink terminals and two accounts linked to a known scam facility in Myanmar’s Payathonzu area. Court documents indicate that these devices played a crucial role in a money laundering and wire fraud operation, with demands that SpaceX, Starlink’s parent company, disable the service for these terminals. The investigation revealed that numerous Starlink dishes were visible on buildings associated with the scam center.
The second warrant focuses on various websites utilized by scammers, noting an even greater presence of Starlink devices at another notorious compound known as Tai Chang, linked to an armed group recently sanctioned by the U.S. government. Legal actions reflect findings from a previous WIRED investigation showing that these scam centers in Myanmar rely heavily on Starlink for internet connectivity.
This operation aligns with the newly established District of Columbia Scam Center Strike Force, announced by the Justice Department in tandem with the FBI and Secret Service. The initiative aims to tackle a network of cryptocurrency scams with origins in Southeast Asia, many believed to be related to organized crime from China. So far, investigators report approximately $400 million in stolen cryptocurrency has been seized.
During a press briefing, Jeanine Pirro, the U.S. Attorney for the District of Columbia, emphasized the commitment to protecting American citizens from organized crime, declaring that the Justice Department will actively pursue action against scammers. SpaceX has not publicly responded to inquiries regarding the warrants, although it previously stated that over 2,500 devices linked to fraud operations had already been disabled.
Further allegations detail that fraudsters used unexpected text messages to lure victims, capturing their attention before transitioning conversations to messaging apps where they solicited investments in fake cryptocurrency schemes. Records from SpaceX and Meta indicated a connection between these scams and specific Starlink systems initiated in the Philippines.
In recent years, authorities have reported that these scams often leverage forced labor in compounds across Southeast Asia, as well as innovative techniques to conduct fraud, including the deployment of generative AI for more sophisticated scams.
Experts believe the creation of the Strike Force showcases an increasing government focus on this issue, although many scam compounds remain active despite local law enforcement efforts. As operations are dismantled, new ones often spring up, exploiting gaps left by regulatory crackdowns.
This coordinated law enforcement activity underscores the serious challenges posed by the rise of scam operations, which have developed into a highly lucrative and insidious industry.
