A total of 28 foreign and Myanmar nationals have been arrested along with evidence for allegedly defrauding customers by selling gemstones online under the guise of lucky-draw winnings in Mandalay, according to authorities.

Acting on a tip-off from responsible citizens that foreigners residing at a house on 80th Street, between 39th and 40th streets, in Maha Aung Myay East Ward, Maha Aung Myay Township, Mandalay Region, were using online platforms to fraudulently sell gemstones, a joint team comprising security personnel conducted a search of the residence on the morning of September 2, 2026.

The operation resulted in the arrest of 20 suspects, including two Chinese men led by Chinese national Mr. Chen Xiao Dai, two Indonesian men and two Indonesian women, one Malaysian man, six Myanmar men and seven Myanmar women.

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 scam.

On the evening of September 3, authorities searched the residence of suspect In Khun Kha Taom, which operated as the “Magdalenamoom Gemstone Trading” business at the corner of 68th and 101st streets in Maha Myain (1) Ward, Maha Aung Myay Township.

Eight additional suspects allegedly linked to the online gemstone scam were arrested, including three Myanmar women, one Myanmar man and four Chinese men. Authorities also seized 498 mobile phones, one tablet, one XL laptop, five computer system boards, one computer monitor, 15 bracelets believed to be jade and other related equipment.

During interrogation, Chinese national Chen Xiao Dai, identified by authorities as the alleged leader of the scam operation, reportedly admitted to illegally bringing around 500 mobile phones into Myanmar through the Laos border for use in online fraud.

According to the investigation, the group used a three-storey building in Maha Aung Myay Township to store counterfeit finished jade products and low-quality finished gemstones. At In Khun Kha Taom’s gemstone business, 10 similarly colored stones were reportedly placed in bags while members of the group staged lucky-draw activities and livestreamed them online to sell the gemstones.

The suspects allegedly told customers who were declared lucky-draw winners that they had won a bag of rough jade as a prize but had to pay taxes and fees before it could be delivered. After receiving the money, the suspects allegedly blocked the customers. The proceeds from the alleged scams were reportedly transferred directly to bank accounts in Indonesia and Malaysia.

The investigation also found that In Khun Kha Taom had opened a gemstone trading business at the residence and worked with Chinese national Chen Xiao Dai to fraudulently sell gemstones through online platforms, according to authorities.

Legal action is being pursued against a total of 28 suspects allegedly involved in the online sale of counterfeit gemstones and low-quality finished products, comprising six Chinese nationals, one Malaysian national, four Indonesian nationals and 17 Myanmar nationals.