Military sources in Kayin State report that Hengsheng Phase 4, a major cyber-fraud compound at Pier 1 controlled by the Karen Border Guard Force (BGF), officially restarted operations on October 1. The operation had temporarily evacuated Chinese nationals, staff, and core equipment to the Mae Ka Na area on September 19 following an intelligence leak. Major Mot Thon of the BGF has since brought the workforce back, placing over 400 Chinese and Myanmar workers under a complete lockdown with strictly no exit allowed.
Originally registered as a casino under the Thein Sein administration, the compound pivoted entirely to online fraud in 2019. Insiders say routine official inspections are merely for show and bypassable with bribes; on rare occasions when pressure mounts, staff are temporarily shifted to rented warehouses near the border bridge. Sources noted the compound holds a mixed crowd: some are trafficked victims smuggled across from Thailand, while others joined voluntarily despite knowing the fraud nature, pushed by heavy financial desperation.
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