UNODC Regional Representative for Southeast Asia and the Pacific, Jeremy Douglas, told Reuters the explosion of casinos and crypto has “supercharged” organized criminal networks in Southeast Asia. Douglas stated it came as no surprise sophisticated threat actors “would look to leverage the same underground banking systems and service providers.”
North Korean hackers were responsible for the theft of $41 million in cryptocurrency from Stake.com.
Funds stolen by Lazarus, which the FBI states is under North Korea’s state intelligence bureau control, is a major source of funding for Pyongyang and its nuclear weapons programmes.
“a hub for organized crime and scamming operations”
Found in the Myawaddy village of Shwe Kokko, KK Garden is a casino and entertainment complex with Chinese investment, according to local officials. Those who have been lucky enough to escape the compound have a much different view, however, claiming that it is a hub for organized crime and scamming operations.
The criminals in charge often lure people from other Southeast Asia countries by offering easy work and extravagant perks, with a particular focus on Malaysian victims. Once they arrive, they are held prisoner and forced to work in online scam centers.
Stories from victims and their families can offer us a glimpse inside the “Garden of Hell.”
Casinos the conduit
The UNODC report stated Southeast Asia’s casinos, junkets, and unregulated crypto exchanges have become “foundational pieces” of the illegal banking structures used by regional organized crime networks.
Casinos, junkets & #crypto: major drivers of #moneylaundering, underground banking & #cyberfraud in East and Southeast Asia. New policy brief https://t.co/RESssnqPTG #organizedcrime #Mekong #ASEAN pic.twitter.com/Oeunz54fUZ
— UNODC SEAsia-Pacific (@UNODC_SEAP) January 15, 2024
The reports revealed that casinos have proven “capable and efficient in moving and laundering massive volumes” of cash and crypto. This creates “channels for effectively integrating billions in criminal proceeds into the formal financial system.”
US News & World Report cited the UNODC as stating it had uncovered Lazarus’s activity through analyzing blockchain data and case information. However, an unnamed person at North Korea’s mission to the UN in Geneva said he was “not familiar with the issue” and that previous reports on Lazarus were “all speculation and misinformation.”
