Cambodian Criminals Use USDT Stablecoins For Transaction Devices, Authorities Overwhelmed

The scammers in Cambodia use USDT Stablecoins for illegal activity transactions. (Photo; Doc. Coins)

JAKARTA A number of bad actors in Cambodia are reported to have used USDT stablecoins to launch their illegal activities. The crypto asset whose value follows the US dollar price was used by a group of fraudsters who offered cryptocurrency exchange services using the legal Houione Pay platform.

According to a SCMP report, Huione Pay, a financial platform approved by the Cambodian government, is a place for a number of Telegram groups offering crypto asset exchange services, including USDT. Some of these groups also provide tools to assist fraud involving international SIM cards and data on Chinese citizens abroad.

In addition, the report also revealed that there are operators offering bank cards, criminal background checks, company records, and bank reports as illegal services. This operator is known to accept USDT as payment. In fact, Cambodia has banned crypto use since 2017.

Jeremy Douglas, regional representative of the United Nations Office on Drugs and Crime, said that crypto use has made local authorities lose quickly with technological developments.

"Criminal groups engaged in online gambling, fraud, money laundering, and the black market have higher technical capacities than most law enforcement agencies in Southeast Asia," said Jeremy Douglas.

Meanwhile, Tether as the USDT publisher recently stepped up compliance efforts, in collaboration with the US to freeze funds at addresses blacklisted by the Office of Foreign Assets Control (OFAC). Tether also claims to have collaborated with US government agencies, such as the US Secret Service and the Federal Bureau of Investigation (FBI).