According to the latest report of the United Nations Office on Drugs and Crime (UNODC), Telegram has now become the main platform for criminal groups in Southeast Asia to conduct illegal transactions. Telegram is used to conduct illegal activities such as cryptocurrency money laundering, personal information selling, and data theft, and through generative AI (GenAI) and deep fake (Deep Fake) technology to expand criminal methods.
(Telegram founder Pavel Durov was indicted for a felony: assisting illegal transactions and organized crime, with a maximum sentence of ten years)
Unlicensed VASPs facilitate money laundering
UNODC pointed out that there are many unregulated virtual asset service providers (VASPs) on Telegram that provide "off-ramp" services (conversion to fiat currency), especially for USDT that has been marked as illegal. These providers claim to process up to 3 million USDT per day and conduct transactions through over-the-counter (OTC) platforms, setting low customer identity verification (KYC) standards and assisting customers in money laundering activities, especially in border areas such as the Mekong River in Southeast Asia.
(Note: Off-ramp refers to the cryptocurrency-to-fiat currency conversion service, while On-ramp refers to the fiat-to-crypto currency conversion service.)
The group’s money laundering process is as follows:
Illegal funds are introduced into the financial system by depositing funds into gambling accounts through methods such as credit cards, charge cards, cryptocurrency, prepaid cards and checks.
The source of funds is disguised through multiple bets, transfers and withdrawals on the gambling platform to hide the source of funds.
Laundered funds are withdrawn or used in legitimate transactions, including purchasing assets or transferring funds to other accounts, or processing funds across multiple online gambling platforms.
(FATF Virtual Asset Anti-Money Laundering Standards Progress Report: 75% of jurisdictions have failed to do a good job, and criminal abuse is rampant)
The combination of AI technology and Telegram has become the preferred method of criminal groups
UNODC pointed out that Southeast Asian criminal groups are currently using emerging technologies such as GenAI and Deep Fake to expand their criminal methods. These groups use these technologies to generate false identities and conduct illegal activities including personal information sales and cryptocurrency wallet information theft. They also use Telegram to Trading malware and cybercriminal services. The chart below shows a whopping 1,750 mentions of the Deep Fake keyword in Southeast Asia’s underground Telegram markets and forums between February and August 2024.
(Telegram is suspected of condoning deep fake sex crimes, and South Korean police launched an investigation)
Southeast Asia has become a global fraud center that earns billions of dollars a year, most of which are controlled by Chinese criminal groups. The bases of these groups are protected and most of the employees are illegal workers from all over the world. UNODC estimates that the fraud industry in Southeast Asia is worth $27.4 billion to $36.5 billion annually.
Currently, Telegram founder Pavel Durov has been charged with a felony in France for assisting illegal transactions and organized crime, and has been restricted from leaving the country in Paris.
This article United Nations: Southeast Asian criminal groups embrace AI, Telegram becomes the main platform for money laundering fraud first appeared on Chain News ABMedia.
