Under the label of “the most extensive online platform for illegal transactions” as per crypto compliance firm Elliptic, Huione Guarantee has seen a remarkable increase of 51% in monthly deposits over the past six months – a growth largely driven by the introduction of its own US dollar-backed stablecoin in September.
According to a report by Elliptic on January 14th, it appears that the pace of expansion for Huione Guarantee is increasing rapidly, having processed more than $24 billion worth of transactions so far.
It was claimed by Elliptic in July 2024 that Huione Guarantee ran an internet marketplace, which had a significant connection to money laundering and cyber fraud activities.
As an analyst, I’m sharing an interesting observation from a recent report by Elliptic. Since then, the monthly inflows have seen a significant surge of approximately 51%. Moreover, the user base has skyrocketed, now exceeding 900,000 individuals.
Elliptic stated that these statistics show that Huione Guarantee has become the most extensive online platform for illegal transactions that has been in operation so far.
Recently, the Huione Group unveiled a lineup of digital currency-focused offerings. These new products include a USD-backed cryptocurrency, a blockchain platform, a cryptocurrency trading exchange, and a communication application – as per the report by Elliptic.
The development of this entity has seen a significant surge following the unveiling of USDH in September – a stablecoin pegged to the dollar, strategically designed to bypass regulatory scrutiny and asset-freezing functionalities that are characteristic of other stablecoins like Tether’s USDT (USDT).
The stablecoin was introduced following an incident in which Tether temporarily blocked one of Huione Pay’s accounts holding USDT, due to suspected associations with the North Korean cybercrime group known as Lazarus, in July.
USDH digital tokens were launched across various blockchain networks like Ethereum, Binance Smart Chain, and Tron. But it’s important to note that the illicit stablecoin USDH isn’t related to the dollar-backed asset from Solana-based DeFi protocol Hubble, specifically known as USDH.
Recently, Huione introduced their self-developed blockchain known as the Huione Chain, or Xone chain, and a decentralized exchange enabling users to swap USDH with various cryptocurrencies. Additionally, they launched an in-house chat service to reduce dependence on external communication platforms such as Telegram.
Additionally, the platform changed its brand name from Huione Guarantee to Haowang Guarantee, aiming to separate itself from the Huione Group after the Elliptic investigation was made public.
Cybersecurity experts uncovered numerous businesses providing “massive quantities” of services related to money laundering, selling stolen personal information, technology, and various goods required for large-scale internet fraud.
elliptic determined that the platform serves as a crucial facilitator for cybercrime activities, particularly scams, across Southeast Asia. Then, they further stated:
“Perhaps no other single entity bears as much responsibility as Huione Guarantee for the global cyber scam epidemic, which has ruined countless lives.”
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2025-01-15 08:52