According to Myanmar's official media "Myanmar Universal New Light" on October 20, the Myanmar Defense Army recently conducted a clearance operation on the electric fraud park near the Myanmar border, seized 30 sets of receivers and accessories of the satellite Internet system "Star Chain" owned by the American space exploration technology company (SpaceX).
During the operation, the Burmese Defense Forces searched around 200 buildings in the Klan Park, where 2,200 employees were found, and arrested 15 people suspected of cyber gambling, fraud and other criminal activities.
Since the epidemic caused the closure of casinos in Myanmar, fraud parks have expanded rapidly in war-torn border areas of the country. In February this year, China, Thailand, and Myanmar launched a joint crackdown, and thousands of suspected fraud suspects were repatriated.
However, after Thailand cut off the internet and electricity to the border area, an AFP investigation conducted earlier this month found that the fraud park began to rebuild again, and several new office buildings and dormitory buildings quickly sprung up, with Musk's "Starlink" equipment also installed on its roofs. The Burmese National Defense Force seized 30 sets of "Starlink" receivers and accessories this time, but satellite images show that nearly 80 "Starlink" satellite antennas are installed on the roof of only one building in KK Park.
Satellite images of the K.K. park in March (pictured above) and September (pictured below)
Data from the Asia-Pacific Internet Information Center (APNIC) Asia Regional Internet Registration Center showed that “StarChain” jumped to become Myanmar’s largest Internet provider in July-September this year. The latest data showed that “StarChain” ranks second with a market share of 12.37%, behind only 13.7% of Myanmar’s national telecommunications company. But so far, “StarChain” has not obtained Internet access license in Myanmar.
"Starlink" is a low-trajectory Internet plan proposed by SpaceX in 2014. It plans to replace traditional communication facilities on the ground with 42,000 satellites, thereby providing low-priced, high-speed and stable satellite broadband services worldwide. However, when providing related services, it also faces many disputes, including the fact that too many satellites may lead to space junk, be used for large-scale organized crime, and affect law enforcement agencies to conduct cross-border anti-fraud operations.
In July this year, the United States Congressional Joint Economic Commission launched an investigation into the role of the “star chain” in the e-fraud parks. The committee’s Democratic senator Maggie Hassan called on Musk to cut off the e-fraud parks’ “star chain” services and raised 11 questions in a letter asking him to explain.
“While most people may have noticed an increasing number of fraudulent text messages, phone calls and emails, they may not know that transnational criminals on the other side of the planet may be using ‘StarChain’ to access the internet and carry out these scams,” Hassan said.
Erin West, who once served as U.S. cybercrime prosecutor, is working to call on the outside world to pay attention to the issue. She said, “It is disgusting that an American company has allowed this to happen,” and she claimed to have asked StarChain in July 2024, when she was prosecutor, but was not answered.
It is reported that multiple Burmese entities operate under the protection of the Karen National Army. They occupy northern Myanmar and use technology parks or cross-border e-commerce companies as cover. In fact, they have built a complete fraud industry chain. Some of the detained persons were trafficked into the park to engage in fraud activities, but many people also took the initiative to enter to obtain high remuneration.
Agence France-Presse said that similar fraud parks are not only rampant in Myanmar, but also widespread in neighboring countries such as Cambodia. Last weekend, Cambodia deported 64 South Koreans suspected of participating in online fraud to Seoul, most of whom were wanted by South Korean police.
A 2023 United Nations report shows that as many as 120,000 people in Myanmar's fraud parks may be forced to engage in online fraud, and the Southeast Asian fraud industry caused approximately US$37 billion in losses to victims last year.
China's Ministry of Public Security also announced last week that China and Myanmar have arrested more than 57,000 Chinese suspects involved in fraud through police law enforcement cooperation and a series of crackdowns. The Kokang "four major families" criminal group in northern Myanmar has suffered a devastating blow.
In February this year, China Foreign Ministry spokesperson Guo Jiakun said that China is actively carrying out bilateral and multilateral cooperation with Thailand, Myanmar and other countries to work together to stop criminals from flowing and committing crimes in relevant countries and jointly eradicate the cancer of online gambling and electronic fraud.
"China is actively carrying out bilateral and multilateral cooperation with Thailand, Myanmar and other countries, comprehensively implementing policies, treating both the symptoms and root causes, working together to block the flow of criminals in relevant countries, jointly eradicate the cancer of online gambling and fraud, and safeguard the safety of people's lives and property and the order of exchanges and cooperation between regional countries." Guo Jiakun said that the Ministry of Foreign Affairs will continue to work with competent departments to guide embassies and consulates abroad to properly handle relevant bail cases and safeguard the safety and legitimate rights and interests of China citizens overseas.
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