The Myanmar military says it has captured one of the most notorious scam compounds on the border with Thailand, as it reclaims key territory it lost in the ongoing civil war. KK Park, south of the border town of Myawaddy, has been synonymous with online fraud, money laundering, and human trafficking for the past five years. Thousands of people were lured to the compound with the promise of well-paid jobs and then forced to run elaborate scams, stealing billions of dollars from victims all over the world. The military, long tainted by its links to the scam business, now claims it has taken the complex as it expands control around Myawaddy, the main trade link to Thailand.

In recent weeks, the military, or junta, has pushed back insurgents in several parts of Myanmar, aiming to maximize the number of places where it can hold a planned election, starting in December. It still doesn't control large swathes of the country, which has been torn apart by conflict since a military coup in February 2021. The election has been dismissed as a sham by opposition forces who have vowed to block it in areas they hold.

KK Park began with a lease agreement in early 2020 to build an industrial park between the Karen National Union (KNU), the ethnic insurgent group which controls much of this region, and a little-known Hong Kong listed company, Huanya International. Researchers believe there are links between Huanya and a prominent Chinese underworld figure Wan Kuok Koi, better known as Broken Tooth, who has since invested in other scam centers on the border.

The complex expanded rapidly, and is easily visible from the Thai side of the border. Those who managed to escape describe a brutal regime imposed on thousands, forced to work long hours, with torture and beatings inflicted on those who failed to meet targets.

The junta's information ministry stated its forces had cleared KK Park, releasing more than 2,000 workers and confiscating 30 of Elon Musk's Starlink satellite terminals used by scam centers for online activities. The statement blamed what it called the terrorist Karen National Union and volunteer people's defense forces, which have been fighting the junta since the coup, for illegally occupying the area.

This action is likely directed at China, which has been pressuring Myanmar’s military to dismantle illegal businesses run by Chinese syndicates on their border. Although KK Park has been shut down, many similar compounds remain active, often under the protection of militia groups allied with the junta. The military now controls the road linking Myawaddy to the rest of Myanmar, a strategic goal ahead of the upcoming election.