Blockchain sleuths at analytics firm Elliptic claim to have uncovered what they allege to be money laundering and other purported crimes enabled by Cambodia-based marketplace Huione Guarantee in a new report published Wednesday. Since its founding in 2021, crypto wallets associated with Huione and its independent merchants have received at least $11 billion, according to Elliptic, which offered that number as a conservative estimate.
Allegations Against Huione Guarantee
- Elliptic alleges that Huione Guarantee has developed into a “den of crime,” with merchants running their own instant messaging app channels and the marketplace arguing it has no visibility into the “specific business of customers” or the nature of money flows on the platform.
- According to Elliptic, Huione is turning a blind eye to alleged crimes, including merchants who “explicitly offer money laundering services,” “sexploitation” schemes, and malicious software.
- The report includes screenshots of alleged conversations between merchants and clients, showing people willing to launder proceeds from “pig butchering” scams, an increasingly common investment fraud scheme.
- Other advertisements shown in the report include electric shock collars used to entrap exploited workers trapped in “scam compounds” in countries like Myanmar, Laos, and Cambodia.
Blockchain Analytics and Investigations
- Elliptic researchers note that although censorship-resistant blockchain networks help facilitate global crime, “investigators and compliance teams are able to proactively detect and disrupt USDT payments by using blockchain analytics.”
- The firm said it has identified and labeled “hundreds of cryptocurrency addresses” controlled by Huione companies, meaning “exchanges and other businesses receiving crypto-assets can screen these transactions … to ensure that these funds cannot be laundered further.”
Conclusion
Elliptic’s report paints a concerning picture of the alleged criminal activities enabled by Huione Guarantee, a multi-billion dollar marketplace. However, the researchers also highlight how the transparency of blockchain networks can aid investigations and help disrupt the flow of illicit funds.
