China busts Bai family’s €34B gambling crime ring in Myanmar
Chinese authorities have successfully demolished one of the largest transnational crime syndicates in recent history, led by the infamous Bai family in Myanmar’s Kokang region. The crackdown uncovered an extensive network involved in cyber fraud, illegal gambling, and drug trafficking, generating an estimated ¥286 billion (€34.2 billion) in illicit profits.
Described by officials as a landmark cross-border law enforcement operation, it led to the arrest of more than 57,000 individuals linked to gambling and telecom fraud. The operation also dealt a major blow to the so-called “Four Major Crime Syndicates” active in northern Myanmar.
At the centre of this criminal empire was Bai Suocheng, a former local strongman who used political and military influence to construct a sprawling network of scam compounds over the past decade. Along with his son Bai Yingcang and daughter Bai Yinglan, the family oversaw operations in at least 41 illegal compounds, including the infamous Cangsheng Tech Park and Wangzhe Honglou (King’s Red Mansion).
Fraud hubs hidden in compounds
According to Chinese investigators, these compounds were used to run massive telecom fraud rings, rigged gambling platforms, and even slave-like labour camps. Victims, many of them Chinese nationals, were trafficked across the border and forced into scam operations. Those who failed to meet daily targets reportedly faced torture, abuse, and, in some cases, execution.
“The Bai family turned northern Myanmar into a lawless playground for organised cybercrime and financial exploitation,” said a Chinese security official during a media briefing. “ This operation reflects our resolve to protect Chinese citizens abroad and disrupt the underground economy fuelling regional instability.”
In 2023, China’s Ministry of Public Security began its inquiry. 36 senior syndicate members, including the heads of the Bai family, were arrested and extradited after a concerted series of raids that followed months of intelligence sharing with Myanmar authorities. The horrific extent of the syndicate’s operations was further highlighted by raids that turned up mass graves of victims and 11 tonnes of drugs.
Prosecutors revealed that the Bai family’s telecom fraud operations were responsible for over 31,000 cases, defrauding victims of more than ¥106 billion (€12.72 billion). On top of that, their illegal gambling activities funnelled another ¥180 billion (€21.6 billion) through shadow financial networks, further destabilising the region’s already fragile economy.
The human toll was equally devastating. Six Chinese citizens were confirmed killed, while countless others were imprisoned, tortured, or forced to work in inhumane conditions inside the compounds.
Just one move in larger crackdown
The crackdown comes amid growing international concern over the rise of cyber-enabled organised crime in Southeast Asia. A recent United Nations Office on Drugs and Crime (UNODC) report noted that criminal syndicates in the region have increasingly shifted from traditional gambling to sophisticated online scams and financial fraud, using weak border controls and unregulated digital platforms.
In response, Chinese authorities have intensified enforcement, launching a series of joint operations with neighbouring countries. Officials stated that 263 criminal syndicates had been dismantled in collaboration with Myanmar, intercepting over ¥80 billion (€9.6 billion) in illegal financial flows.
