The United Nations (UN) has issued a stark warning over the rise of crypto-driven organized crime, revealing how armed militias and criminal syndicates are increasingly turning to blockchain tools, especially stablecoins, to fund and obscure their operations.
A new report from the United Nations Office on Drugs and Crime (UNODC) details how transnational criminal groups, particularly from East and Southeast Asia, are using illicit crypto mining, stablecoins, and encrypted messaging platforms to build a vast global underground economy.
Cambodia-Based Platform Processed $24B in Suspected Criminal Crypto Flows
The report titled “Inflection Point: Global Implications of Scam Centres, Underground Banking and Illicit Online Marketplaces in Southeast Asia,” outlines how these networks have embedded themselves in regions with weak regulatory oversight, ranging from Zambia and Nigeria to Tonga and the Middle East.
These groups, once known primarily for scams and human trafficking, are now operating full-fledged online ecosystems, with unlicensed exchanges, digital identity fraud, and decentralized marketplaces becoming the norm.
“We are seeing a global expansion of East and Southeast Asian organized crime groups,” said Benedikt Hofmann, UNODC Acting Regional Representative. “It spreads like a cancer. Authorities treat it in one area, but the roots never disappear; they simply migrate.”
One major focus of the report is the Cambodia-based platform Huione Guarantee, now rebranded as Haowang, which has emerged as a key hub for illicit financial activity.
Since 2021, the platform has processed over $24 billion in cryptocurrency and supports more than 970,000 users.
Investigators say it offers services ranging from identity forgery to scam toolkits and has even launched its stablecoin, exchange, and blockchain, all of which are designed to evade regulatory scrutiny.
As enforcement efforts increase, much of this activity is shifting to encrypted platforms like Telegram, where illicit vendors continue to offer laundering services and fraud tools.
UNODC researchers stated that Huione’s reach now extends beyond Asia, with vendors targeting countries such as Nigeria, Namibia, and Angola.
The group’s expansion demonstrates a growing trend: the globalization of scam centers and financial fraud via crypto infrastructure.
Criminal Crypto Networks Fuel Blackouts in Libya and Iran, Expand Worldwide
The report also detailed the consequences of illegal mining in countries with cheap electricity. In Libya, mining operations have reportedly contributed to widespread power outages.
In Iran, unauthorized crypto mining has been linked to rolling blackouts in Tehran and other provinces. Southeast Asia remains a hotspot.
In March, Thai police discovered 63 illegal crypto mining machines in abandoned buildings near Bangkok, with over $300,000 in stolen electricity.
A similar case in Malaysia, uncovered earlier this year, was revealed only after an explosion in a residential neighborhood exposed a hidden mining setup.
The UNODC estimates that scams originating from East and Southeast Asia resulted in financial losses between $18 billion and $37 billion in 2023 alone.
The U.S. reported $5.6 billion in crypto scam losses during the same year, including $4.4 billion linked to so-called “pig butchering” fraud schemes, which are often traced back to criminal networks in the region.
In response to the growing threat, the UN is calling for multilateral cooperation to monitor crypto-related fraud, strengthen legal frameworks for asset recovery, and improve cross-border intelligence sharing.
As criminal syndicates adapt and expand through blockchain infrastructure, the UN warns that existing enforcement tools may be outpaced unless governments act swiftly and in concert.
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