Emre Yumlu 
Organized crime networks in Southeast Asia are taking their fraudulent operations to the next level, with cryptocurrencies at the heart of their activities. According to a new report published by the United Nations (UN), despite intensified crackdowns, these criminal organizations have expanded from Myanmar to as far as Mexico.
The data reveals that Southeast Asia has emerged as one of the leading hubs for some of the world’s most lucrative cybercrime operations. The report highlights that cyber fraud in the region has grown faster than other types of transnational crimes due to its easy scalability and the ability to reach millions of victims online.
In 2023 alone, it is estimated that nearly $37 billion was lost to cyber scams in East and Southeast Asia, much of it linked to cryptocurrency fraud. Benedikt Hofmann, the UN’s regional representative for Southeast Asia, described these networks as “spreading like cancer” in his comments to Reuters.
Stablecoins Designed by Criminal Networks
The semi-anonymous and borderless nature of cryptocurrencies has enabled these criminal organizations to evade government enforcement. As authorities increase pressure on known scam hubs, syndicates are shifting operations to more remote areas or migrating entirely online. Technologies like Starlink are even being used to bypass government surveillance.
The report by the United Nations Office on Drugs and Crime emphasized that these networks are not only building scam centers but are also creating illicit payment services, unauthorized cryptocurrency exchanges, encrypted communication platforms, and even their own stablecoin projects.
One major player mentioned is Huione Guarantee — recently rebranded as Haowang. Based in Cambodia, the platform has processed tens of billions of dollars worth of cryptocurrency transactions since 2021.
Expanding their operations even further, the platform has launched its own crypto exchange, trading app, online gambling platform, blockchain network, and a USD-backed stablecoin specifically designed to dodge government regulations.
Crypto Scams Go Global
The rise of platforms like Huione Guarantee illustrates how digital assets have become critical tools for global criminal activities. These platforms provide criminals with a full suite of infrastructure, technology, and financial services.
The UN report stresses that crypto scams are no longer a Southeast Asian issue. Criminal collaborations are expanding into South America, Eastern Europe, and Africa, fueling a global network of fraud. In the United States alone, crypto-related scams caused over $5.6 billion in financial losses in 2023.
Weak governance, high levels of corruption, and limited law enforcement capacity have made parts of Southeast Asia attractive hubs for cybercrime. Massive scam compounds have been established in countries like Myanmar, Cambodia, and Laos, often using forced labor to run these operations.
The UN identifies victims from over 55 countries, predominantly from Asia and Africa, who have been trafficked and forced to scam others into sending money — usually via cryptocurrency.
Despite ongoing shutdown efforts, criminal syndicates are rapidly adapting. The UN report notes that several new virtual asset service platforms have emerged, particularly through encrypted apps like Telegram.
Finally, the UN warns that unless stronger international cooperation is achieved, the unchecked growth of these criminal networks could have global repercussions, originating from Southeast Asia but impacting the entire world.
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