Transnational cybercrime syndicates based in Southeast Asia are evolving rapidly, leveraging cryptocurrency and custom-built blockchain services to scale their global fraud operations, according to a new United Nations report.
Despite ongoing law enforcement crackdowns, these criminal networks are spreading globally, creating a sophisticated web of cyber-enabled fraud stretching from Myanmar to Mexico.
Crypto at the Core of a Growing Criminal Empire
The UN report reveals that Southeast Asia has become home to some of the world’s most profitable cybercrime operations, with cryptocurrency sitting at the center of the ecosystem. The regional cyberfraud industry has now outpaced many other transnational crimes, driven by its scalability and ability to target millions of victims online.
The report estimates that up to $37 billion was lost to cyber fraud in East and Southeast Asia alone in 2023, a significant portion tied to crypto-related scams. Benedikt Hofmann, the UN’s acting regional representative for Southeast Asia, described the situation as spreading “like a cancer.”
Rise of Shady Stablecoins and Illicit Platforms
As government crackdowns intensified, syndicates adapted by relocating operations to more remote areas and moving online. They now leverage technologies like Starlink satellite internet to evade surveillance and operate outside of governmental reach.
Criminal groups are no longer just managing physical scam centers; they have expanded into online gambling platforms, unlicensed payment processors, cryptocurrency exchanges, encrypted communications apps, and even their own stablecoins. According to the UN, these developments mark a dangerous new phase in global cybercrime.
One such example is Huione Guarantee—a platform linked to Cambodia that has processed tens of billions of dollars in cryptocurrency transactions since 2021. Now rebranded as Haowang, the platform has launched its own cryptocurrency exchange, online gambling operations, a blockchain network, and even a “U.S. dollar-backed stablecoin” intended to sidestep financial regulations.
A Global Threat Beyond Southeast Asia
The threat isn’t confined to Southeast Asia. Criminal syndicates are increasingly collaborating with networks in South America, Eastern Europe, and Africa, expanding their influence. In the United States alone, crypto-related scams, including pig butchering schemes, led to over $5.6 billion in losses during 2023.
The UN report highlights that these syndicates thrive in regions plagued by weak governance, corruption, and limited law enforcement capabilities. Massive scam compounds have been uncovered in Myanmar, Cambodia, and Laos, where tens of thousands of trafficked individuals are forced to operate scams under brutal conditions.
Victims from more than 55 countries, predominantly from Asia and Africa, have been identified in these illicit operations.
The Scale of Huione Guarantee’s Operations
The scale of Huione Guarantee’s operation is staggering. The UN reports that its vendors have received at least $24 billion in inflows over the past four years. With over 970,000 users, the platform has become a one-stop shop for criminal enterprises, offering the infrastructure, financial services, and communications tools needed to execute large-scale scams.
Following the recent exposure of its activities, Google delisted Huione’s mobile app from its platform, although the criminal networks continue to adapt and expand through encrypted apps like Telegram.
Calls for Stronger International Action
The UN’s findings have triggered urgent calls for stronger international collaboration. Authorities warn that failure to act decisively could have “unprecedented consequences for Southeast Asia that reverberate globally,” affecting financial stability, governance, and public trust in digital assets worldwide.
The report stresses that without unified action across jurisdictions, cybercriminal syndicates will continue to thrive and innovate, posing an ever-growing threat to the global economy.
