The UN Thinks Criminals are Using Stablecoin for Money Laundering! Number is Increasing According to Their Report

In a newly released report, the United Nations (UN) has raised serious concerns over the misuse of stablecoin and other blockchain tools by global crime syndicates. 

According to the UN, these technologies are no longer just tools of innovation—they’re becoming critical components in international money laundering operations.

This alert comes from the United Nations Office on Drugs and Crime (UNODC), which has been tracking how organized crime groups are using crypto infrastructure not only to hide illicit gains but also to fuel scams, exploit weak regulations, and fund criminal activities across borders.

Stablecoins Becomes New Tool of Choice for Global Criminals

In the past, cash and offshore accounts were the preferred channels for illegal money flows. Today, stablecoin—a type of cryptocurrency pegged to fiat currencies like the US dollar—has emerged as a new favorite. 

These digital assets offer both speed and anonymity, making them ideal for laundering money with minimal risk of detection.

According to the UNODC report titled “Inflection Point: Global Implications of Scam Centres, Underground Banking and Illicit Online Marketplaces in Southeast Asia,” criminals are shifting away from traditional methods and embracing decentralized digital finance. 

This shift is especially prominent in regions with weak regulatory oversight such as parts of Africa, the Middle East, and Southeast Asia.

Read also: Is Stablecoin the New Narrative for Solana? Looking at the Recent Data Report

$24 Billion Platform at the Center of Crypto Crime

One of the most eye-opening revelations in the report involves a Cambodia-based platform formerly known as Huione Guarantee, now operating as Haowang. 

Investigators say this single platform has processed over $24 billion in suspected criminal cryptocurrency transactions since 2021.

Haowang reportedly supports nearly a million users and offers a variety of illegal services, including identity forgery kits, scam toolkits, and its own blockchain and stablecoin. 

According to the UNODC, “It offers services ranging from identity forgery to scam toolkits and has even launched its stablecoin, exchange, and blockchain, all of which are designed to evade regulatory scrutiny.”

This is part of a larger trend of decentralized criminal ecosystems that operate far from the reach of national law enforcement. 

“We are seeing a global expansion of East and Southeast Asian organized crime groups,” said Benedikt Hofmann, UNODC Acting Regional Representative. “It spreads like a cancer. Authorities treat it in one area, but the roots never disappear; they simply migrate.”

Crypto Crime Reaches New Corners of the Globe

While Southeast Asia is the epicenter, the UNODC notes that this network is expanding globally. Vendors associated with platforms like Haowang are now targeting countries such as Nigeria, Namibia, and Angola, offering their services through encrypted messaging apps like Telegram.

This digital expansion allows criminals to remain anonymous and mobile, making it increasingly difficult for governments to track or dismantle these operations.

Read also: Is USDC Beating USDT in the Stablecoin Race? Looking at Recent Findings

Illegal Mining Adds Fuel to the Fire

The report also highlights how illegal crypto mining—driven by the need for cheap electricity—is wreaking havoc in certain regions. 

In Libya, mining operations have reportedly led to large-scale blackouts. In Iran, unauthorized mining has been linked to rolling power outages in major cities like Tehran.

Authorities in Thailand and Malaysia have uncovered illegal mining setups in abandoned buildings and residential neighborhoods, often only discovering them after significant property damage or unusually high electricity usage.

The Financial Impact is Staggering

The scale of these crypto crimes is massive. The UNODC estimates that in 2023 alone, scams linked to criminal groups in East and Southeast Asia caused financial losses between $18 billion and $37 billion globally. 

In the United States, crypto scams led to $5.6 billion in losses, including $4.4 billion from “pig butchering” schemes—romance-based frauds often linked back to Southeast Asian criminal syndicates.

In response to this growing threat, the UN is urging nations to collaborate on monitoring crypto fraud, improving legal structures for asset recovery, and enhancing cross-border intelligence sharing. 

The report warns that without coordinated global efforts, law enforcement agencies risk falling behind rapidly evolving criminal strategies that leverage blockchain technology.

Read also: USDT 1 Billion Mint on TRON: Should Investors Be Concerned?

Conclusion

The UN’s latest findings serve as a chilling reminder that while crypto and stablecoin technology can drive innovation, they can also empower crime. 

As digital finance becomes deeply embedded in our global systems, regulation and international cooperation must evolve just as quickly. The battle against digital crime is no longer confined to cyberspace—it’s playing out on a global scale, and the stakes have never been higher.

FAQ

1. What is stablecoin and why is it being used for money laundering?

Stablecoin is a cryptocurrency tied to a stable asset like the US dollar. Its speed, stability, and anonymity make it attractive for laundering illicit funds.

2. What did the UN say about stablecoin in their report?

The UN warned that criminals are increasingly using stablecoin and other crypto tools to finance scams, hide assets, and evade law enforcement globally.

3. What is the Huione Guarantee platform?

Now called Haowang, it’s a Cambodia-based crypto platform accused of processing over $24 billion in suspicious transactions and offering illegal services.

4. Which regions are most affected?

Southeast Asia is the epicenter, but the criminal networks are expanding into Africa and the Middle East. Countries like Nigeria, Namibia, and Angola are being targeted.

5. What actions is the UN recommending?

The UN is calling for better regulation, stronger international cooperation, and improved systems for tracking and recovering illicit crypto assets.