United Nations Report: PlusToken and other illicit cryptocurrency schemes are a "powerful tool" for cybercrime groups

BlockBeats News, April 21st, a new report from the United Nations Office on Drugs and Crime (UNODC) shows that transnational organized crime groups from East and Southeast Asia are rapidly expanding their global operations, using illegal cryptocurrency mining as a "powerful tool" to launder billions of dollars in illegal proceeds.

This report, titled "Turning Point: The Global Impact of Southeast Asia's Scam Center, Underground Money Service Providers, and Illegal Online Marketplaces," documents how these crime groups have penetrated weakly regulated areas such as Zambia, Nigeria, Tonga, and the Middle East.

The report's authors state that the criminal activities of these gangs are increasingly diverse, no longer limited to just scams and trafficking; they have also established a mature online ecosystem, including unlicensed cryptocurrency exchanges, encrypted messaging tools, and stablecoins, to drive an industrial-scale fraud economy.

The report notes that Huione Guarantee (recently rebranded as Haowang) is one of the central hubs of this underground economy. Since 2021, this Cambodia-based platform has amassed over 970,000 users and $240 billion in cryptocurrency flow, serving as a one-stop shop for money laundering tools, fake identities, and fraud services. With increasing law enforcement pressure, many services are now offered on Telegram. The platform has also launched its stablecoin, blockchain, cryptocurrency exchange, and online gambling products, aiming to "evade government control."