UN Warns of Money Laundering Rampant in Cryptocurrency Mining by Criminal Organizations

Transnational criminal organizations from East and Southeast Asia are rapidly expanding their activities, utilizing illegal cryptocurrency mining as a «powerful tool» for laundering billions in illicit profits, according to a report from the United Nations Office on Drugs and Crime (UNODC).

The document, titled «Turning Point: Global Implications of Fraudulent Centers, Underground Banking, and Illegal Online Markets in Southeast Asia,» discusses how criminal syndicates are penetrating regions with weak oversight, such as Zambia and Nigeria.

The report reveals that these criminals are extending their reach beyond fraud and human trafficking to establish comprehensive online ecosystems comprised of cryptocurrency exchanges, encrypted messaging systems, and stablecoins.

«They are spreading like cancer. Authorities may manage to tackle it in one area, but the roots never disappear; they simply migrate elsewhere,» noted Benedict Hofmann, the acting regional representative for UNODC.

Research indicates that Huione Guarantee, recently renamed Haowang, is a key hub in the underground economy outlined in the report. Since 2021, the Cambodian platform, which has over 970,000 users and a trading volume of $24 billion in cryptocurrency, has become a versatile tool for money laundering, acquiring fake identification, and providing fraudulent services.

The report’s authors added that the firm has also launched its own products, including stablecoins, a blockchain, a trading platform, and an online casino, aimed at «bypassing government regulation.»

«The combination of accelerated professionalization of these operations and their geographical expansion into new parts of the region and beyond is contributing to increased [criminal] activity in a sector that governments need to prepare for,» emphasized Hofmann.

According to UNODC, cryptocurrency mining is particularly crucial for such groups, as it significantly helps them avoid scrutiny from anti-money laundering authorities.

Statistics from 2023 indicate that Americans lost approximately $5.6 billion to cryptocurrency fraud, with around $4.4 billion linked to «romance scam» schemes originating from Southeast Asia.

Meanwhile, losses from scammers within East and Southeast Asian countries during the same period totaled around $37 billion.

To address this issue, the UN has called for urgent multilateral actions, including the need for «monitoring and investigating threats.»

In August 2024, Thai authorities shut down an illegal bitcoin farm following complaints from local residents regarding frequent power outages.

In January 2025, local police confiscated 996 mining devices from JIT Co., a company based in the eastern province of Chonburi.