Thailand Busts $180M Crypto Scam Ring in Major Crackdown

Thailand has cracked down on a massive cryptocurrency scam ring laundering millions through illegal Tether (USDT) trading, according to Bangkok Post. In a sweeping operation dubbed “Operation Crypto Phantom”, police arrested five suspects and uncovered over $180 million in illicit crypto transactions tied to drug cartels and scam networks.

The raids were carried out across Bangkok, Phuket, and Chon Buri, three major urban and tourist centers that have increasingly become hotspots for underground crypto activity.

Operation Crypto Phantom: Inside the Sting

Led by Pol Maj Gen Thatphum Jaruphat, the Economic Crime Suppression Division (ECD) executed coordinated raids on eight locations last week. The focus was on unauthorized currency exchange businesses offering crypto services without licenses, many of which operated in high-traffic tourist areas.

Authorities said these firms illegally traded cryptocurrency—mainly Tether (USDT)—to help clients bypass financial scrutiny and tax obligations. Though crypto trading is legal in Thailand, it becomes taxable when profits are repatriated or earned within the country, including through overseas exchanges.

ECD officers found that the targeted crypto desks were helping clients exchange Thai baht for USDT, and vice versa, outside any regulated trading platform. This allowed customers—mostly foreigners—to quietly move funds, avoid taxes, and remain under the radar.

Over 1,000 Transactions, Tied to Transnational Crime

The investigation revealed over 1,000 suspicious financial transactions, all linked to transnational criminal syndicates. Authorities said the value of the illegal trades exceeded 14 billion baht, or approximately $418 million, but the portion definitively linked to this specific group amounts to at least $180 million.

The transactions were not just about tax evasion. The police identified a clear trail connecting the funds to drug trafficking networks, call center scams, and illegal online gambling platforms. 

These crimes are notoriously difficult to trace using traditional banking systems, which explains the appeal of crypto—particularly stablecoins like USDT—for laundering illicit gains.

Evidence Seized and Suspects in Custody

During the raids, ECD officers seized a large cache of evidence. This included mobile phones, laptops, financial documents, and bank passbooks. All five suspects are currently in custody, facing charges related to unauthorized crypto trading, tax evasion, and money laundering.

The alleged operators ran what investigators described as a “black market crypto desk.” These setups were offering digital currency services without going through Thailand’s official crypto exchanges or reporting mechanisms. This lack of oversight made them a convenient tool for criminal groups moving large amounts of money.

The Role of Tether (USDT) in Illicit Transfers

Tether, a stablecoin pegged to the US dollar, is one of the most popular cryptocurrencies used for money transfers in Asia. Unlike Bitcoin or Ethereum, USDT is designed for minimal volatility, making it the preferred choice for quick, discreet transactions—both legal and otherwise.

The suspects reportedly focused on USDT to maintain price stability while helping clients quickly move funds between borders or into local currencies like Thai baht. This mode of operation bypasses licensed financial institutions, which are required to report suspicious activity and comply with anti-money laundering (AML) protocols.

Crypto's Legal Grey Areas in Thailand

While Thailand has been supportive of blockchain innovation, its regulatory framework is strict when it comes to crypto trading. Firms dealing in digital assets must register with the Thai Securities and Exchange Commission (SEC) and comply with KYC/AML regulations.

Profits from crypto, especially when converted to fiat and brought into the country, are subject to capital gains tax. However, the unlicensed crypto exchanges targeted in Operation Crypto Phantom operated outside these laws, providing a haven for those looking to avoid both taxation and law enforcement.

What This Means for Crypto in Southeast Asia

Thailand's bust comes amid growing global concern over unregulated crypto exchanges and stablecoin misuse. Southeast Asia, with its growing crypto user base and loosely monitored P2P markets, is particularly vulnerable to misuse of digital assets.

This incident also highlights how stablecoins like USDT, originally designed to simplify trading and remittance, are now being exploited by crime syndicates to hide illicit gains. 

Pol Maj Gen Thatphum confirmed that this operation is just the beginning. The ECD is expanding its probe to identify more players in the illicit crypto market, both in Thailand and abroad. Authorities aim to shut down these grey-market crypto desks, which continue to undermine the country’s financial oversight systems.