SpaceX Pulls Plug on 2,500 Starlink Terminals Powering $7.5B U.S. Scam Hub

The sprawling, fortified compounds along the Thai-Myanmar border have long operated in a legal gray zone, shielded by armed militias and powered by satellite internet. But in October 2025, SpaceX took an unprecedented step: it remotely disabled more than 2,500 Starlink terminals that had become the digital backbone of a transnational criminal network responsible for human trafficking, forced labor, and cyber-fraud on an industrial scale. “We are committed to ensuring the service remains a force for good and sustains trust worldwide,” said Lauren Dreyer, head of Starlink business operations, announcing the move. This marked the first major action by a tech company to directly disrupt satellite-enabled organized crime—a watershed moment in the global fight against cyber-fraud.

The Criminal Architects and Their Fortresses

At the heart of this shadow economy are Chinese syndicates, working in partnership with Myanmar’s armed groups. Wan Kuok-koi, known as “Broken Tooth,” and She Zhijiang are among the key figures. Through entities like Hong Kong’s Dongmei Investment Group and Yatai International Holdings Group, they have transformed remote farmland into fortified cities such as KK Park and Yatai New City—each a self-contained hub for scam operations, complete with hospitals, hotels, and watchtowers. The U.S. Treasury has sanctioned both individuals and their companies, highlighting the global reach of these networks. Local militias, including the Karen National Army, provide security and profit from the operations, creating a symbiotic relationship that has proven resilient to law enforcement.

The Human Cost: Trafficking and Exploitation on a Global Scale

The scale of human suffering is staggering. United Nations reports from August 2023 estimate that 120,000 people are trapped in scam compounds in Myanmar, with another 100,000 in Cambodia. Victims—many from Africa, China, India, Vietnam, and Southeast Asia—are lured by false job offers, then subjected to 17-hour workdays, beatings, and starvation. Their passports are confiscated; escape requires paying exorbitant “contract termination fees.” Amy Miller, a researcher who has interviewed survivors, explained on NPR in March 2025: “Once you’re at the border, escape is nearly impossible.” The operations blend human trafficking with cybercrime, generating billions annually while leaving a trail of shattered lives.

American Losses and the Rise of “Pig Butchering” Scams

Americans have not been spared. In 2024 alone, U.S. citizens lost $10 billion to Southeast Asia-based scams—a 66% increase from the previous year. Treasury Secretary Scott Bessent noted in October 2025 that total U.S. losses now exceed $16.6 billion. Individual stories are harrowing: Erika DeMask of Illinois lost her life savings, sold her home, and faced total financial ruin. The so-called “pig butchering” scams—where criminals build trust over weeks on social media or dating apps before coaxing victims into fake cryptocurrency investments—are especially devastating. The FBI estimates these scams alone stole nearly $4 billion from Americans in 2023, with the average victim losing $160,000.

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