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Criminal groups from Southeast Asia have built their own cryptocurrencies, blockchain networks, and exchanges to hide billions in illegal money, a new United Nations report shows.
These crime groups, based in Myanmar, Cambodia, and Laos, have turned cryptocurrency use into a large-scale operation. They’re now spreading to Africa, South America, and Eastern Europe, according to the UN Office on Drugs and Crime (UNODC).
“It spreads like a cancer,” said Benedikt Hofmann from UNODC. “Authorities treat it in one area, but the roots never disappear; they simply migrate.”
The report, titled “Inflection Point: Global Implications of Scam Centers, Underground Banking and Illicit Online Marketplaces in Southeast Asia,” reveals how these criminal groups have moved beyond using existing financial systems. Instead, they’re building their own solutions tailored for crime.
One group mentioned in the report, Huione Guarantee (now called Haowang), handled over $24 billion in fake cryptocurrency deals between 2021 and 2024. This Cambodia-based platform has grown to over 970,000 users and has created its own digital currency, exchange, and blockchain network, named Xone Chain.
Source: UNODC
These gangs use scam tactics known as “pig butchering” — slowly convincing victims to invest more and more money — along with artificial intelligence (AI)-generated deepfakes to target people worldwide. These operations generate around $40 billion each year, the UN estimates.
Crypto mining has become an important tool for these criminal networks. By stealing electricity and working off the grid, gangs can create digital assets that appear legitimate but are hard to trace.
“By stealing electricity and operating off-grid, gangs can generate seemingly clean digital assets at minimal cost and with little traceability,” states the UNODC report.
These illegal mining operations have caused power outages in several countries. In March 2025, officials in Thailand found 63 illegal mining machines in Pathum Thani province that had stolen more than $300,000 worth of electricity.
As police crack down in Southeast Asia, these groups have moved to regions with weaker law enforcement. Recent raids in Nigeria in December 2024 led to the arrest of 792 people linked to crypto scams, highlighting the extent to which these networks have spread.
“The convergence between the acceleration and professionalization of these operations…and their geographical expansion…translates into a new intensity in the industry — one that governments need to be prepared to respond to,” warned Hofmann.
The UN has called for urgent international action, including stronger measures to disrupt financial flows, better coordination of financial intelligence, and enhanced efforts to recover stolen assets through global collaboration.
