Myanmar Bill Seeks Death Penalty for Scam Coercion, Life Terms for Crypto Fraud

Bill targets coercion and large-scale online fraud

Myanmar’s ruling military-backed government has released a draft parliamentary measure that would sharply increase penalties tied to online scam operations and related crypto fraud, according to local reporting.

The proposed legislation, described as an “Anti-Online Scam Bill,” would introduce the death penalty for individuals accused of using severe abuses to compel others into carrying out online scams. It would also seek life imprisonment for those who operate online scam centers or commit certain cryptocurrency-related scam offenses.

Capital punishment provision tied to forced scam labor

Singapore-based outlet CNA reported Friday that the draft bill permits capital punishment in cases involving “violence, torture, unlawful arrest and detention, or cruel treatment” used against another person for the purpose of forcing them to participate in online scam activity.

The measure is aimed at criminal conduct associated with scam compounds where victims are coerced into engaging in coordinated fraud, including schemes that can involve cryptocurrency investment scams.

Life imprisonment proposed for operators and crypto scam offenses

Alongside the capital punishment provision, the bill would also impose life imprisonment for operating online scam facilities, as well as for committing offenses categorized as crypto scams, CNA reported.

The proposal frames these operations as organized criminal activity and seeks to address both the management of scam centers and the execution of fraud schemes that often target victims abroad.

New committee would coordinate international cooperation

CNA said the draft legislation outlines the formation of a new committee intended to coordinate international cooperation against online scam networks.

Myanmar’s military-backed parliament is next scheduled to convene in the first week of June, according to the report, when the bill could be considered as part of the legislative agenda.

International scrutiny on scam compounds in conflict-affected regions

The bill emerges amid sustained international attention on cybercriminal networks operating from fortified compounds in Myanmar, particularly in conflict-affected areas. Reports have described how victims are trafficked and forced into large-scale online fraud operations that target users globally.

These operations have been linked to a range of tactics used to keep victims working, and have included fraudulent online activity such as crypto investment schemes.

U.S. Treasury sanctions cited in connection with crypto investment scams

In September 2025, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) sanctioned nine entities in Myanmar’s Shwe Kokko region and ten entities in Cambodia over alleged involvement in crypto investment scams.

According to the U.S. Treasury action cited in the report, the sanctioned groups were linked to practices including debt bondage, violence, and coercion used to force individuals into scam work.

FBI reports $11.4 billion in crypto-related fraud losses

The broader scale of crypto-linked fraud has also been documented in U.S. law enforcement reporting. The FBI stated in its 2025 Internet Crime Report that cryptocurrency-related fraud losses reached $11.4 billion.

The FBI report said more than half of total internet crime losses were associated with crypto schemes, and that seniors accounted for $4.4 billion in reported losses.

Context for enforcement and cross-border action

Myanmar’s proposed “Anti-Online Scam Bill,” as described by CNA, would combine tougher criminal penalties with mechanisms aimed at improving cross-border coordination. The move comes as governments and regulators continue to focus on scam centers that use trafficking, coercion, and violence to sustain fraudulent operations—often including schemes that involve cryptocurrency.