The expansion of transnational cybercrime gangs in Southeast Asia has been reported by the UN, with their reach being extended through the use of cryptocurrency and customized blockchain infrastructure.
Cybercrime syndicates across Southeast Asia have escalated their activities, placing cryptocurrency at the center of their expanding fraudulent operations, according to the United Nations. Despite intensified crackdowns by authorities, these criminal organizations continue to expand their global influence, weaving complex networks from Myanmar to Mexico.
Data indicates that Southeast Asia has become a hub for some of the world’s most extensive and profitable cybercrime operations, with cryptocurrency playing a central role. The report notes that the region’s cyberfraud sector is expanding faster than other transnational crimes, thanks to its scalability and ability to target millions of potential victims through online platforms.
The report estimates that cyber fraud cost East and Southeast Asia up to $37 billion in 2023, with crypto scams accounting for a significant share of those losses. Benedikt Hofmann, the UN’s acting regional representative for Southeast Asia, told Reuters in a commentary that the operations spread “like a cancer.”
Questionable Stablecoins Under Scrutiny
Cryptocurrencies, with their pseudoanonymity and global accessibility, have largely enabled the shift, making it increasingly difficult for governments to contain the issue. As law enforcement intensified efforts in known scam hubs, criminal networks began relocating to remote areas or moving their operations online, often using technologies like Starlink satellite internet to evade government crackdowns.
Since 2021, the platform—linked to Cambodia and several other countries—has processed tens of billions of dollars in cryptocurrency transactions. Its rapid expansion has led the platform to recently launch a variety of cryptocurrency-related products, including a crypto exchange and trading services.
The latest data reveals the staggering scale of this cybercrime network. Huione Guarantee has accumulated more than 970,000 users, many of whom reportedly engage in illicit activities such as online gambling and large-scale fraud. According to the UN’s report, Huione Guarantee vendors received inflows totaling at least $24 billion over the past four years.
Crypto Scams Widen Their Scope
The rise of platforms like Huione Guarantee underscores the growing intersection of digital currencies and global cybercrime. Criminals increasingly use these platforms as one-stop hubs, leveraging their technology, infrastructure, and financial tools to carry out large-scale scams.
The United Nations has warned that crypto-related scams have expanded beyond Southeast Asia. Criminal gangs are collaborating with networks across South America, Eastern Europe, and Africa to broaden their global fraud operations. In 2023 alone, crypto-related scams—such as “pig butchering” schemes—caused losses exceeding $5.6 billion in the United States.
The report claims that criminal groups have turned Southeast Asia into a hub for online crimes, largely by exploiting regions with weak governance. They have taken advantage of high corruption levels and limited law enforcement capacity to expand their operations. As a result, they have established massive scam compounds across countries like Myanmar, Cambodia, and Laos, where they force tens of thousands of trafficked individuals to work under coercive conditions.
The UN report identifies victims from over 55 countries—mainly across Asia and Africa—who suffer exploitation in scam operations. Traffickers force these individuals to deceive others into transferring funds, often using cryptocurrency.
The report also warned that scam syndicates are adapting rapidly, despite ongoing efforts to dismantle their operations. The UN noted that “several competing entities with known criminal affiliations have expanded their virtual asset service businesses,” and new platforms are increasingly launching on messaging services like Telegram.
International calls for stronger cooperation among governments have been prompted by the developments to counter the escalating threat posed by cybercrime syndicates, as a failure to address the issue was warned by the UN to carry “unprecedented consequences for Southeast Asia that would reverberate globally.”
