On January 15, the United Nations Office on Drugs and Crime (UNODC) published a report highlighting the role of casinos, junkets, and crypto in the underground banking and money laundering infrastructure across East and Southeast Asia. According to UNODC, Tether USD (USDT) is the most used crypto to wash money related to illicit activities.

According to the study, these elements have rapidly proliferated, paralleling a spike in cross-border criminal activities. Jeremy Douglas, the UNODC Regional Representative for Southeast Asia and the Pacific, emphasized the technological revolution in underground banking, driven by the need for faster, anonymized transactions and the mingling of illicit funds.

“The illicit economy’s expansion has necessitated a digitized approach, utilizing casinos and cryptocurrencies, thereby supercharging the criminal business landscape, particularly in the Mekong region,” Douglas stated.

The report, titled ‘Casinos, Money Laundering, Underground Banking, and Transnational Organized Crime in East and Southeast Asia: A Hidden, Accelerating Threat,’ explores the interconnection between illegal online casinos, e-junkets, and crypto exchanges.

The document also highlights how Tether USD (USDT) is used to route money “through multiple bank or cryptocurrency exchange accounts for a percentage of the total laundered and transferred funds.” Those services are called ‘motorcades’ and can be found on social media platforms, namely Facebook and TikTok, or Telegram channels. It also states that the Tron network is the main blockchain used for USDT transactions related to illicit activities.