China’s gambling crackdown spawned wave of illegal online casinos and crypto-crime in Asia

UNODC’s report details how organized crime networks in East and Southeast Asia exploit loosely regulated physical and online casinos—amplified by third-party payment systems and crypto exchanges—to scale money laundering and cyberfraud, with Tether (USDT) on TRON frequently used. After China curtailed Macau junkets, operators shifted to jurisdictions such as Cambodia, Laos, the Philippines, and Myanmar border areas, and diversified into malicious app and malware development, online bank fraud, blockchain gaming, and cybercrime-as-a-service. The report warns that technology-enabled underground banking is widening the gap with law enforcement and urges coordinated regional action as these operations expand beyond Asia.