“The scale of this problem is far greater than what any government or competent authority is aware of at this point,” Tan said of the Chain Argos study.
As Southeast Asia’s online gambling and fraud industry grows larger and more sophisticated, crypto watchdogs are increasingly investigating the mechanisms used to hide the proceeds of crime.
The risks are alarmingly high, and cybercrime experts are only beginning to uncover the true extent of the problem.
Large-scale laundering incident reveals the dark side of Singapore’s plan to attract ultra-wealthy people
Large-scale laundering incident reveals the dark side of Singapore’s plan to attract ultra-wealthy people
Minimal regulation makes digital currencies, particularly the Token Tether (USDT) on the Tron operating system, the best choice for moving large amounts of illicit proceeds, according to a United Nations exposé report on money laundering released in January. It has become a means of
However, such transactions can be tracked through a cryptocurrency wallet, albeit using a unique anonymized address consisting of a string of letters and numbers. This is because logs of recent transactions exist and may provide investigators with clues as to the criminal’s identity based on transaction patterns.
Tan still believes in the untapped potential of the crypto market, but worries that the investment environment will be weakened by regulators not detecting and investigating suspicious activity.
“Eventually the curtain will come down on compliance theater,” he said.
“It’s hard to say when, but there’s a growing recognition, at least from what we’ve seen, that continuing this show is not going to work because real harm is being caused here.”
“It is no exaggeration to say that they are fueling an organized crime economy and running a parallel financial system,” the security expert said.
“The fact that Lazarus and Hamas financiers use the same provider highlights their global reach and capabilities, and the fact that they get the job done.”
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The dark world of Asia’s online casino industry
The dark world of Asia’s online casino industry
blockchain thief
Victims of scams have no choice but to educate themselves as quickly as possible and delve into the crypto space that scammed them in the first place to try to recover their investment.
Weeks after American citizen Brian Bruce lost $191,000 in 2021 on a fake crypto investment platform masquerading as a real exchange, he became obsessed with the crypto wallet he sent the money to.
So-called pig butchering scams, which have proliferated across the Mekong Delta in recent years, are targeting the entire world, with scammers seeking to establish a relationship (often a romantic relationship) with their victims before encouraging them to invest in the fraudulent platform. It is characterized by building. .
The “murder” occurs when the victim transfers funds to the scammer’s cryptocurrency wallet.
‘I can kill you here’: Inside Myanmar’s illegal fraud base run by China
‘I can kill you here’: Inside Myanmar’s illegal fraud base run by China
After Bruce began volunteering with the fraud-stopping Global Anti-Scam NGO, which has helped unravel fraud networks based in Asia, Bruce used just such a memory of wallet addresses as a starting point to make transactions. collected and tracked.
“As the number of victims increased, similar wallets started appearing,” he said. “these [scammers] Many wallets similar to mine were connected and I drew many conclusions from them. ”
California Prosecutor Erin West said that depending on the exchange used and whether the criminal moved the funds before the warrant was issued, following this trail could help victims recoup their losses. He said it may be possible.
“We have to look away from the traditional method of arrest because it doesn’t work in cases like this,” she said.
West, who teaches cryptocurrency knowledge to other state prosecutors, said businesses and governments need to adopt more innovative approaches when investigating fraud, including preparing for the increased use of artificial intelligence. talk.
Transnational criminal organizations such as the 14K Triad and the Heavenly Way Alliance are already involved in widespread money laundering across Asia, using cryptocurrencies to hide their financial footprint, according to a United Nations report. It is said that they are using the casino.
digital fingerprint
Blockchain transactions are giving investigators like Tan and Bruce evidence of a global money-laundering process that connects seemingly disparate criminals.
This Week in Asia has obtained details of two crypto wallets identified as recipients of illicit funds traded on the Binance exchange.
One of them is Wang Yicheng, a Chinese entrepreneur with deep connections in Bangkok’s business community who was the subject of a Reuters report over his alleged links to cryptocurrency movements and fraudulent transactions.
Mr. Wang did not respond to a Reuters request for comment in November, but the Thailand Business Association, where he previously served as a director, distanced itself from Mr. Wang, adding that it had a longer relationship with him.
The other suspect runs a defunct remittance and foreign exchange business in Canada and operates a wallet on the Tron system.
Five Malaysians involved in ‘fake friend’ phone scam to be extradited to Singapore
Five Malaysians involved in ‘fake friend’ phone scam to be extradited to Singapore
Regional intelligence officers explained that based on their transaction history, the two appear to be playing slightly different roles within the same money laundering network.
“Wang is basically part of a group that leads cyber fraud operations,” the police officer said, adding that the other man was part of a “sophisticated international money laundering organization.”
