Elliptic Research has uncovered a massive online scam network operated by Huione Guarantee, a marketplace run by the Cambodian conglomerate Huione Group. The platform, which primarily operates in Chinese, has been linked to over $11 billion in transactions, with a significant portion of that tied to scams and money laundering activities.
Huione Guarantee runs thousands of instant messaging app channels, each managed by different merchants. These merchants offer services related to cybercrime, including money laundering, scam software development, and even equipment used for torturing and imprisoning scam compound workers.
While the platform uses various payment methods, it heavily relies on Tether (USDT) for transactions. Elliptic was able to trace thousands of crypto addresses associated with Huione Guarantee and its merchants, thanks to the transparency of blockchain technology.
The report highlights the importance of exchanges and businesses screening crypto transactions for links to Huione wallets to prevent further criminal activities. Additionally, stablecoin operators can block the misuse of their assets through these wallets. Elliptic also mentioned that law enforcement can use their investigation tools to trace payments and hold those responsible for the scams accountable.
The exposure of Huione Guarantee’s scam network underscores the crucial role of blockchain transparency in combating online crime. In related news, a crypto wallet-draining group called Pink Drainer recently fell victim to an address poisoning scam, losing nearly $30,000.
With a background in Economics, Politics, and Cultures of East Asia, Aaron, the author of the report, brings a wealth of knowledge and experience in the FinTech industry. He is dedicated to providing data-driven and fact-based content that caters to both seasoned crypto enthusiasts and newcomers. Aaron’s expertise in blockchain and digital currencies makes him a go-to source for all things related to the industry.
