Onchain evidence played a pivotal role in securing the conviction of three individuals for terrorism financing in Indonesia in 2024 and 2025, highlighting a growing shift in how courts assess blockchain-based data.
In a statement on Sunday, TRM Labs said Indonesian courts have shown that cryptocurrency evidence — including wallet addresses, transaction histories, and onchain fund flows — is not only admissible but can serve as the foundation of a terrorism financing case.
The firm noted that such networks have increasingly relied on cryptocurrency to move funds, partly due to slower regulatory scrutiny compared to traditional financial systems. However, that dynamic is now beginning to change.
In one case, authorities tracked a defendant who transferred more than $49,000 in USDT across 15 transactions from a local exchange to an overseas platform. The funds were later funneled into a terrorism fundraising campaign in Syria linked to ISIS.
The investigation was conducted by Indonesia’s financial intelligence unit alongside its counterterrorism police division, Densus 88. Their blockchain analysis was presented in court and accepted as critical evidence in all three cases.
Indonesia is not the only country in Southeast Asia using blockchain analytics to catch criminals, TRM said.
“Similar patterns are emerging across Southeast Asia, where governments are investing in blockchain intelligence capabilities and enhancing collaboration between public and private sectors to address illicit finance risks.”
TRM Labs said financial intelligence units and law enforcement agencies in Singapore and Malaysia are also strengthening their technical capabilities to track cryptocurrency flows.
On April 1, Cambodian and Chinese authorities arrested Li Xiong, a leader of the Huione Group, an organization linked to scam centers in Cambodia involved in “pig butchering” frauds and other crypto investment schemes targeting victims worldwide. He was later extradited to China, where he is expected to face fraud and money-laundering charges.
The arrest followed the detention of Chen Zhi, head of Prince Group — which operates Huione Group — three months earlier.
In a separate report released in February, TRM noted that illicit entities received around $141 billion in stablecoins in 2025, marking the highest level in five years.
