Pro-Regime Karen Scam Lords Relocate Compounds After Naypyitaw Talks

The regime-aligned Democratic Karen Benevolent Army (DKBA) has begun relocating online scam compounds from Kyauk Khet to areas near its headquarters in Sone Se Myaing village and Thae Phyu Chaung following talks with junta officials in Naypyitaw, according to local sources.

A source close to the DKBA said the move was intended to ease international pressure, as scam compounds along the Moei River in Kyauk Khet are easily visible from the Thai side of the border.

In April, the U.S. State Department offered a reward of up to $10 million for information leading to the seizure of assets linked to the DKBA-controlled Tai Chang compound, one of the largest Chinese-run scam hubs in Kyauk Khet. The FBI is investigating Tai Chang’s role in global cyber fraud and human trafficking.

Residents said scam sites in Kyauk Khet began relocating earlier this week, with some four-story buildings scheduled to move by the end of the month. “There will be no scam sites left in Kyauk Khet,” one resident said.

The DKBA’s relocation follows a July 9 meeting in Naypyitaw with the regime peace negotiation body led by Lieutenant-General Yar Pyae, where the militia pledged to cooperate in tackling online fraud. Analysts note, however, that the DKBA has long profited from protecting scam estates, and its promises are unlikely to end operations.

Local sources added that the military has recently intensified airstrikes near Kyauk Khet, suggesting coordination with DKBA to push scam operators into more remote, forested areas. One scam building was hit in a bombing raid on July 17, said locals.

Reports also indicate the regime plans to demolish scam compounds in Kyauk Khet, as it did last year at KK Park and Shwe Kokko, where hundreds of buildings were destroyed under international scrutiny.

Despite these relocations, recruitment ads were recently posted on Telegram for security guard positions at scam compounds in Falu, south of Myawaddy, where the regime is pressing offensives with around 1,000 troops backed by airstrikes. The advertisements claimed security is good in the area.

The regime claims to have destroyed over 600 buildings at KK Park and 70 at Shwe Kokko in late 2025, but residents say scam operations continue in Shwe Kokko while others just moved elsewhere in the township.

Meanwhile, Kyauk Khet’s Tai Chang estate remains a focal point of U.S. sanctions, with DKBA leaders accused of enabling fraud and trafficking.

The Irrawaddy’s attempts to contact DKBA officials for comment on the relocations were unsuccessful.