The UNODC report reveals organised crime groups in Southeast Asia are using and creating cryptocurrency infrastructures to launder billions. They now build tailored ecosystems, such as the Huione Guarantee, facilitating vast fraudulent transactions. Additionally, cybercrime has industrialised with enhanced scams in the region, spreading globally. Law enforcement efforts have resulted in significant arrests, highlighting the ongoing issue of crypto-related crimes.
Organised crime syndicates in Southeast Asia are increasingly exploiting cryptocurrency by launching their own coins, exchanges, and blockchain networks, according to a recent report from the United Nations Office on Drugs and Crime (UNODC). These groups are constructing bespoke financial ecosystems which enable them to launder vast sums of money, evading detection by authorities.
An example highlighted in the report is the Huione Guarantee, now renamed Haowang. Operating from Phnom Penh, Cambodia, this platform has facilitated over $24 billion in transactions linked to fraudulent activities within the past four years and boasts over 970,000 users along with numerous interconnected vendors.
The UNODC cautions that scam operations in Myanmar, Cambodia, and Laos have effectively industrialised cybercrime, using advanced technologies like blockchain and AI to execute complex fraud schemes. These include phishing, investment scams, and particularly the so-called “pig butchering” tactics, generating billions in illicit revenue.
Multiple arrests have occurred over the past year as law enforcement has targeted these fraud operations. A notable incident in October 2024 resulted in the arrest of 27 individuals in Hong Kong for running a crypto scam exploiting AI deepfakes that defrauded victims of over $46 million. Similarly, in Nigeria, around 792 people were detained for their involvement in a crypto romance scam.
The UN report indicates that these criminal networks are exploiting stablecoins and private exchanges to bypass international financial regulations, which allows for seamless fund movement without the oversight typically required under Anti-Money Laundering in mainstream platforms. The Huione group has launched products like a cryptocurrency exchange and its own blockchain network, aiming to further innovate their illegal operations.
While primarily centred in Southeast Asia, the UNODC notes that these criminal activities are beginning to spread to regions such as Africa, South America, and the Pacific, emphasising the urgent need for governments to address and close existing regulatory loopholes to combat this expanding problem.
