Jakarta, Indonesia Sentinel — Indonesia Attorney General’s Office (Kejaksaan Agung) has uncovered illegal financial flows involving cryptocurrency over the past year, resulting in state losses of approximately Rp1.3 trillion ($85 million).
“There have been illegal financial transactions within the crypto ecosystem, causing state losses of up to 1.3 trillion rupiah within a year through the misuse of digital platforms,” said Asep Nana Mulyana, the Attorney General for General Crimes in a written statement, as reported by CNN Indonesia on Friday (February 7, 2025).
According to the Attorney General’s Office, the illegal transactions stem from fraudulent crypto-based investment schemes. Asep noted that perpetrators have become increasingly sophisticated in concealing their financial trails. They employ mixing and tumbling services to obscure transaction histories and use cross-chain bridging to move assets between blockchains undetected.
Link to Online Gambling
Separately, Indonesia Financial Transaction Reports and Analysis Center (PPATK) has also linked illegal cryptocurrency transactions to online gambling operations.
“Based on our analysis, gambling proceeds have been funneled abroad, causing a capital outflow exceeding 28 trillion rupiah ($1.83 billion) through Binance and other cryptocurrency platforms as of the end of 2024,” said PPATK Head Ivan Yustiananda on Friday, as reported by Tirto.
Ivan warned that the massive outflow not only harms individuals but also poses risks to Indonesia’s broader economy.
He emphasized that cryptocurrency is increasingly being used by criminals, particularly illegal online gambling operators to launder and move illicit funds overseas, making strict legal action necessary.
Strengthening Investigative Capabilities
A recent global report ranked Indonesia third in the 2024 Global Cryptocurrency Adoption Index, with total transactions reaching $157.1 billion. The Indonesian government has been working to regulate the crypto sector to ensure a secure and beneficial ecosystem for the country’s economy.
Attorney General for General Crimes, Asep Nana Mulyana stressed that investigating crypto-related crimes requires advanced techniques beyond conventional methods. “We cannot rely solely on traditional approaches to resolve these cases,” he said.
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To maintain regulatory integrity, the Attorney General’s Office vowed strict enforcement against violations in the crypto sector. “The Attorney General’s Office must ensure that no legal breaches in the crypto asset industry go unpunished. Strong and targeted law enforcement will help position Indonesia as a safe and reliable destination for technology-based businesses,” Asep concluded.
(Raidi/Agung)
