Thai authorities smash underground crypto trading ring

Thailand authorities have busted a massive illegal cryptocurrency trading ring, according to media reports. The crackdown is part of “Operation Crypto Phantom,” a targeted campaign by Thai police to combat crypto-facilitated money laundering. The operation involved simultaneous raids across three key cities—Bangkok, Chon Buri, and Phuket. In total, the investigators raided some eight locations across the three cities. It was noted that the Hua Pi Tui Huan Chang site in Bangkok’s bustling Huai Khwang district was spotlighted among the operations.

Ring involved 1000+ transactions: police

The authorities have detained five people during the crackdown. According to the police, the network involved over 1,000 transactions and a staggering THB14 billion ($418 million) in circulation. Authorities believe the five arrested were key facilitators in setting up shell companies and crypto firms that existed solely to clean illicit money flowing in from scams, drugs, and online gambling operations.

The suspects allegedly set up crypto trading fronts, primarily in Tether (USDT) and have been flagged for dubious links to international crime networks, that offered untraceable currency exchanges. These exchanges were reportedly engaged in unauthorised “hand-to-hand” cryptocurrency and helped clients avoid taxes and tracing of their funds.

Legalities of crypto trading

Crypto trading is legal in Thailand. However, registered exchanges and clear KYC (Know Your Customer) protocols are required, which did not apply to the busted firms. Crypto gains are taxable once they are remitted to Thailand, even if made on foreign platforms. These firms allegedly helped clients dodge any financial scrutiny and taxes obligation USDT and non-Thai platforms. As per the Central Investigation Bureau (CIB), such unregulated environments are a fertile ground for criminal activities. They provide a channel for laundering money from drug trafficking and call center scams.

In early April, Thailand unveiled plans to implement new digital regulations which were aimed at combating cybercrime and tightening the oversight of digital asset businesses. The enforcement was expected to commence mid-April, according to the Minister of Digital Economy and Society (DES), Prasert Jantararuangtong. The Thai cabinet approved two drafts proposed by the DES regarding the same.