Criminal organizations turned to cryptocurrency…Laundry network started in Southeast Asia, spreading worldwide
Cryptocurrency inflows into platforms under suspicion of criminal money laundering are rapidly increasing. (Source: UNODC)
Organized crime using cryptocurrency technology is rapidly expanding, centered on Southeast Asia. The United Nations Office on Drugs and Crime (UNODC) warned in a recent report that criminal organizations are establishing their own cryptocurrency ecosystems, breaking away from existing financial systems, and laundering billions of dollars through them.
According to the report, now criminal forces are not only utilizing cryptocurrency but also extending their reach to issuing their own coins, operating exchanges, and building blockchain networks. Such tailored financial systems evade surveillance networks in each country, making tracking difficult.
A representative case mentioned is the Chinese-based platform ‘Huione Guarantee’ (now ‘Haowang’) headquartered in Phnom Penh, Cambodia. This platform is found to have facilitated $24 billion in cryptocurrency scam funds over the past four years, currently having about 970,000 users and thousands of affiliated sellers. The group has introduced its own stablecoin, cryptocurrency exchange, online gambling services, and the blockchain network (Xone Chain), and announced the launch of the ‘Huione Visa Card’ in February 2025.
The UNODC noted that this method of money laundering based on cryptocurrency is spreading from Southeast Asia to Africa, South America, and the Pacific region, and urged governments to respond, stating, "The global spread of Asia-origin underground financial networks should not be underestimated."