Underground Crypto Empires: UN Exposes Southeast Asia's Digital Crime Ecosystem
In the latest news, Coinmooner highlights a critical report presented by the United Nations, focusing on the Web3 industry. One of its key aspects concerns the use of cryptocurrency infrastructure for illicit purposes. The report highlights realities related to illegal activities emerging under the cover of modern digital technologies.
The document, titled
Turning Point: Global Consequences of Fraudulent Centers, Underground Banking, and Illegal Online Markets in Southeast Asia
Reveals the extent to which transnational criminal syndicates are creating entire underground ecosystems, actively using cryptocurrency mining, illegal exchanges, and stablecoins. These activities have become tools for money laundering, funding criminal operations, and bypassing international controls.
Benedict Hofmann, the Acting Regional Representative of the UN Office on Drugs and Crime (UNODC), emphasized that illegal mining is increasingly used as a method for disguising financial flows. According to him, this scheme is spreading like a malignant tumor: efforts to combat it in one region only temporarily block the problem, while its "roots" easily migrate to other countries. Mining enables the creation of digital assets that appear "clean" from the perspective of oversight, thereby strengthening the shadow economy. In some countries, including Libya, these illegal farms have caused large-scale power outages, highlighting the seriousness of the issue.
When Crypto Turns Criminal: UN Report Highlights Global Enforcement Challenges
According to UNODC specialists, cryptocurrency mining has become a key component in the arsenal of criminal organizations. Its key advantage for criminals is the ability to bypass global financial control mechanisms and covertly build capital. Mining allows criminals to almost seamlessly convert dirty money into digital assets without arousing suspicion from regulators.
The report also mentions the online platform Huione Guarantee, which has recently been renamed Haowang. Since 2021, over $ 24 billion in cryptocurrency has passed through it. The report's authors believe that this platform has become a true hub for the shadow crypto economy. Fraudsters actively utilize it to expand their influence and establish themselves in various countries, developing extensive financial manipulation schemes.
As a solution to the problem, UN experts urge the international community,, particularly developed countries, to take coordinated, decisive action. A global initiative is needed to combat cybercrime and financial fraud in the digital space. Without clear measures to strengthen international control and cooperation, the spread of organized criminal networks in the Web3 space could spiral out of control.
It is worth noting that earlier, analysts from the DappRadar platform reported that, in the first four months of the year alone, the Web3 industry lost around $6 billion due to fraudulent schemes, including so-called rug pulls, when developers suddenly withdraw liquidity, leaving investors with nothing.
In conclusion, Coinmooner would like to remind everyone that the development of Web3 represents a path to a decentralized future; however, on this journey, it is crucial to utilize advanced protection technologies. Personal cybersecurity, awareness of potential risks, and avoiding dubious projects are key measures that can help protect both your finances and the industry itself from the actions of fraudsters.
