UN Report: Telegram Becomes a Hotspot for Crypto Scams and Money Laundering

A recent United Nations report highlights that Southeast Asian criminal networks are increasingly using Telegram for illegal activities. These range from trading hacked data to laundering money via unlicensed cryptocurrency exchanges.

Criminal Exploitation of Telegram

The United Nations Office on Drugs and Crime (UNODC) discovered that organized crime groups exploit Telegram’s limited moderation and encrypted messaging to conduct large-scale illegal operations. According to Reuters, the app provides a platform for criminals to trade sensitive information like credit card details and passwords. Additionally, they acquire malware to steal funds through the app.

The report states that unlicensed cryptocurrency exchanges promoted through Telegram play a crucial role in these groups’ money laundering activities.

Significant Fraud and Money Laundering in Southeast Asia

The report specifically focuses on Southeast Asia, where Chinese crime syndicates engage in large-scale fraud. The UNODC estimates these groups generate between $27.4 billion and $36.5 billion annually. One notable example is a criminal syndicate claiming to transfer $3 million worth of stolen Tether (USDT) daily through Telegram. These groups typically operate in notorious areas like Laos’ “Golden Triangle” economic zone, known for illicit activities.

Recently, Vietnamese police dismantled an international crypto scam network in the region. The operation led to the arrest of five suspects accused of defrauding over 1.76 trillion Vietnamese Dong through fake relationships and investment schemes on the “Biconomynft” platform.

Privacy vs. Crime Prevention

With nearly a billion users worldwide, Telegram faces increasing criticism for facilitating criminal activities. Founder Pavel Durov’s August arrest in Paris, on charges of allowing illegal activities on the platform, sparked fierce debates on the responsibility of messaging platforms to prevent crime versus protecting user privacy. As many cryptocurrency users know, Telegram plays a pivotal role in encrypted communication, with both positive and negative impacts.

In response to the criticism, Durov announced stricter moderation policies for Telegram. The platform will now, under certain circumstances and upon valid legal requests, share offenders’ IP addresses and phone numbers with authorities.

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