A total of 28 people, including 11 foreign nationals and 17 Myanmar nationals, have been arrested along with evidence for allegedly defrauding customers by selling gemstones online in Mahaaungmyay Township, Mandalay Region.
Following reports from responsible citizens that foreign nationals residing at a house on 80th Street, between 39th and 40th Streets, in Mahaaungmyay East Ward, Mahaaungmyay Township, were allegedly using online platforms to fraudulently sell gemstones, a combined team comprising security personnel conducted a search of the house on the morning of 2 September 2026.
The operation resulted in the arrest of 20 suspects, including two Chinese men led by Chinese national Chen Xiao Dai, two Indonesian men, two Indonesian women, one Malaysian man, six Myanmar men and seven Myanmar women. The authorities also seized 28 desktop computers, three laptop computers, two computer system boxes, 81 mobile phones, three tablets and related equipment allegedly used in the online scams.
On the evening of 3 September, the authorities searched the residence and the “MagDalenamoom Gemstone Trading” business operated by suspect In Khun Khar Taom, located at the corner of 68th Street and 101st Street in Mahamyaing 1 Ward, Mahaaungmyay Township. During the search, eight additional suspects allegedly involved in the online gemstone fraud network were arrested. They comprised three Myanmar women and one Myanmar man, including In Khun Khar Taom, and four Chinese men. A total of 498 mobile phones, one tablet, one XL-type laptop, five computer system boards, one computer monitor, 15 bracelets believed to be jade, and other related items were also seized.
Chinese national Chen Xiao Dai, who was arrested as a suspect, admitted that he was the leader of the fraud operation. He illegally transported around 500 mobile phones into Myanmar from the Lao border area for use in online fraud. They used a three-storey building in Mahaaungmyay Township to store and sell counterfeit finished jade products and low-quality finished products. At the gemstone sales premises operated by suspect In Khun Khar Taom, 10 similarly coloured stones were placed in bags, and members of the group staged fake lucky-draw activities, which they livestreamed online to attract customers and sell the products. They deceived winners by claiming that they had won a bag of rough jade as a prize but were required to pay taxes and other charges before the prize could be delivered. After receiving the money, the suspects blocked the victims. The proceeds from the fraudulent activities were transferred directly to bank accounts in Indonesia and Malaysia.
Investigations also revealed that In Khun Khar Taom had opened a gemstone trading shop at the residence and worked together with Chinese national Chen Xiao Dai to fraudulently sell gemstones online.
Legal action was taken against the 28 suspects involved in the online sale of counterfeit gemstones and low-quality finished products. The suspects comprise six Chinese nationals, one Malaysian national, four Indonesian nationals and 17 Myanmar nationals. — MNA/KTZH
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