Blockchain analytics firm Elliptic has released a damning report alleging extensive money laundering and other criminal activities facilitated by the Cambodia-based marketplace Huione Guarantee. This report claims that since its inception in 2021, Huione and its associated merchants have managed to move an estimated $11 billion in cryptocurrency, with much of this sum linked to illicit activities.
Open Advertisement of Illegal Services
Elliptic’s researchers assert that Huione Guarantee merchants are openly advertising illegal services. While crypto assets often enable global crime, the transparent nature of blockchain technology allows investigators to trace and disrupt these activities effectively. As Elliptic noted, “The nature of the activity on Huione Guarantee suggests that the bulk of these payments relate to illicit activities.”
Preferred Payment Methods and Corporate Connections
The report highlights that Tether’s USDT stablecoin is a preferred payment method on Huione Guarantee, which also supports various payment apps and bank transfers. Huione Guarantee is part of the larger Huione Group, which has connections to multiple industries, including insurance, airlines, and real estate across Southeast Asia. Intriguingly, Elliptic’s report also alleges links between Huione executives and Cambodia’s Prime Minister, Hun Manet.
A “Den of Crime” Allegation
Elliptic’s six-page report paints a grim picture of Huione Guarantee’s operations, describing the platform as a “den of crime.” The marketplace’s merchants, who use independent instant messaging channels, allegedly offer services such as money laundering, sexploitation schemes, and distribution of malicious software. The firm criticizes Huione’s claim of having no visibility into the specific activities of its users, suggesting that the platform is turning a blind eye to these criminal endeavors.
Evidence of Fraudulent Activities and Forced Labor
The report includes screenshots of conversations between merchants and clients discussing the laundering of funds obtained from “pig butchering” scams—a form of investment fraud involving social engineering. It also shows advertisements for electric shock collars, purportedly used to control exploited workers in “scam compounds” across Myanmar, Laos, and Cambodia. The United States Institute of Peace has noted that such industrial-scale scam operations relying on forced labor are spreading rapidly across Asia.
Advantages of Blockchain Transparency in Crime Detection
Despite the use of censorship-resistant blockchain networks by criminals, Elliptic highlights the advantage of blockchain transparency. The researchers stated, “Investigators and compliance teams are able to proactively detect and disrupt USDT payments by using blockchain analytics.” The firm has identified and labeled hundreds of cryptocurrency addresses controlled by Huione companies, enabling exchanges and other businesses to screen these transactions and prevent further money laundering.
The Ongoing Challenge of Regulating Digital Financial Platforms
This report underscores the importance of rigorous blockchain analytics in combating the misuse of cryptocurrencies and highlights the ongoing challenges in regulating digital financial platforms globally.
