Google and Apple recently took action to remove several apps linked to Huione Group, a Cambodia-based company accused of operating one of the largest illicit online marketplaces to date.
The company’s marketplace, Huione Guarantee, which has recently rebranded as Haowang Guarantee, has gained widespread attention for its connection to money laundering, fraud, and cybercrime activities.
This crackdown follows reports from crypto crime tracking firms Elliptic and Chainalysis, which revealed that Huione Guarantee has facilitated over $24 billion in transactions since its inception.
Huione Guarantee, primarily known as a Telegram-based market, provides a platform for money laundering services, stolen personal data, and tools used for various types of online fraud.
The marketplace has expanded at an alarming rate, becoming one of the largest illicit operations in the digital world.
According to Elliptic’s research, Huione Guarantee has surpassed even infamous dark web marketplaces like Silk Road and Hydra in terms of sales, reaching $24 billion in transactions.
Source: Elliptic
It’s also believed to have a growing user base that exceeds 900,000 individuals, many of whom are involved in fraudulent activities.
The platform acts as a middleman in fraudulent transactions, providing escrow services for sellers and buyers.
Despite claims that it remains neutral, it has become a central hub for scams, including “pig butchering,” where victims are tricked into investing in fake crypto platforms.
One seller even offered electrified shackles to be used on scam centre workers, some of whom are reportedly trafficked into the country.
Electric shock shackles and batons are being marketed on Huione Guarantee, with sellers recommending they be used on workers in scam facilities.
According to Elliptic CEO Tom Robinson,
"I think Google and Apple should consider whether Huione Group is an appropriate business to be distributing apps through their platforms."
A significant factor in Huione Guarantee’s rapid growth is its launch of USDH, a dollar-backed stablecoin, in September 2024.
Unlike other stablecoins such as Tether (USDT), USDH lacks mechanisms to freeze assets, making it an attractive option for cybercriminals seeking to evade oversight.
USDH is promoted as a solution to transaction freezes and auditing issues, offering a seamless exchange for legal tender without complications.
USDH operates across multiple blockchains, including Ethereum, BNB Chain, and Tron, further broadening its reach in illegal activities.
Elliptic’s report highlights the stablecoin's deliberate design to avoid regulatory scrutiny, noting that USDH has become a preferred tool for illicit financial transactions.
Its introduction has been linked to Huione Guarantee’s increasing popularity among cybercriminals and fraudsters who wish to bypass traditional financial systems.
Huione Guarantee’s expansion is not limited to money laundering or cryptocurrency-related fraud.
The platform also enables other forms of cybercrime, providing users with the tools to conduct scams on an industrial scale.
The marketplace supports a wide range of fraudulent services, including stolen personal data, money laundering methods, and technology used for cyber attacks.
Experts at Elliptic have pointed out that Huione Guarantee acts as a “key enabler of transnational organised crime groups that are perpetrating scams against victims around the world.”
The growth of Huione Guarantee mirrors the rising sophistication of cyber scams, many of which are supported by the use of cryptocurrency and blockchain technology.
The platform’s decentralised exchange (DEX), Huione Chain (also known as Xone Chain), has made it easier for users to swap USDH for other cryptocurrencies, providing a seamless gateway for illicit financial transactions.
Following mounting concerns over Huione Guarantee’s role in facilitating fraud and cybercrime, Google and Apple have started taking action against the company’s apps.
Google removed all apps associated with Huione Group from its Play Store, while Apple, at the time of writing, had removed Huione Pay, its crypto exchange app.
However, several other apps linked to Huione Group remain available on the App Store.
Elliptic has warned that the use of such platforms for illegal activities poses a serious risk to the integrity of the digital asset space.
As Tom Robinson of Elliptic said,
"Google and Apple should reconsider their policies around distributing apps that may have links to illicit activities."
Adding to the alarming scope of Huione Guarantee’s illicit activities is its possible connection to the infamous Lazarus Group, a North Korean cybercriminal syndicate.
In July 2024, Tether froze a USDT account linked to Huione Pay, one of Huione Group’s services, citing connections to the Lazarus Group.
Known for its involvement in high-profile cyberattacks and illicit financial operations, the Lazarus Group’s ties to Huione Guarantee raise further concerns about the platform’s role in facilitating international crime.
The Lazarus Group has been linked to numerous cyberattacks, including the 2014 Sony hack and the WannaCry ransomware attack.
Huione Guarantee's involvement in cryptocurrency crimes, especially regarding fund transfers, shows the increasing risks of unregulated digital markets.
The misuse of Huione Guarantee by criminal groups also reflects the challenges law enforcement faces in addressing global cybercrime.
In response to growing scrutiny, Huione Guarantee has rebranded itself as Haowang Guarantee.
The company’s rebranding efforts appear to be a strategic move to distance itself from its previous name, though Elliptic’s research suggests that the core operations remain unchanged.
In a rebranding announcement, Huione Guarantee makes it clear it remains a division of Huione Group. (Translated from an original Chinese post / Source: Elliptic)
Despite this rebranding, Huione Guarantee’s troubling activities continue, with Elliptic noting,
“Perhaps no other single entity bears as much responsibility as Huione Guarantee for the global cyber scam epidemic, which has ruined countless lives.”
As Huione Guarantee evolves and expands its operations, experts are raising alarm over the risks posed by such platforms in the ever-growing world of cryptocurrency.
With billions of dollars flowing through illicit digital markets, authorities face significant challenges in addressing the role of unregulated platforms in fostering cybercrime.
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