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The United Nations Office on Drugs and Crime (UNODC) is warning that cryptocurrencies are increasingly being used to fuel illegal activities in Southeast Asia. The agency is especially worried about how shady financial systems, like unregulated casinos and illegal online gambling, are using crypto for crime.
How Criminals are Using Crypto
According to the UNODC’s report, some virtual asset service providers (VASPs) are making it easier for criminals to hide their tracks. This is letting organized crime groups operate without much oversight. To tackle the issue, UNODC is calling for stronger monitoring and better training for law enforcement to spot money laundering through crypto.
The report also highlighted that, while not every scam involves crypto, its speed and ability to easily transfer funds across borders make it a popular choice for criminals. The problem is made worse by misinformation and a lack of cooperation between countries, which is why UNODC wants tougher regulations.
Tether’s Connection to Crime
Tether (USDT), especially on the TRON blockchain, has become a favorite for criminals in Southeast Asia. These groups, involved in everything from money laundering to cybercrime, use Tether because it makes it easy to move stolen money quickly.
Even though Tether is often used for legal purposes, UNODC found that it’s also involved in high-risk transactions, like those tied to illegal gambling and fraud. In fact, Tether has been linked to large criminal operations, including drug and human trafficking, and has been associated with North Korea’s hacking group Lazarus.
Crypto’s Role in Crime: Overstated?
Despite concerns about crypto being used for crime, recent studies show that cash is still the top choice for criminals. Homeland Security Investigations (HSI) even found that regulated crypto platforms are helping law enforcement fight crime by using blockchain’s transparency to track illegal activities.
Merkle Science found that only 0.61% of Tether (USDT) and 0.22% of USD Coin (USDC) transactions were flagged as suspicious between 2021 and 2024. And according to Chainalysis, only 0.34% of all crypto transactions in 2023 involved illegal activity, suggesting that crypto’s role in crime is much smaller than many think compared to traditional finance.
