Huione Guarantee was uncovered as a $11 billion marketplace for cybercrime
Huione Guarantee, an apparently respectable online marketplace, is being used to launder money from internet scams, particularly "pig butchering" investment fraud, according to researchers.
A pig butchering scam involves tricking the victim into progressively putting money on phony websites that promise large investment returns. The deception becomes obvious when victims attempt to withdraw funds, at which point they have typically lost a considerable sum of money.
According to Elliptic, a blockchain analytics firm, merchants on Huine Guarantee have made at least $11 billion in transactions, some of which were linked to various types of cybercrime, such as creating websites for investment fraud, personal data sales, and money laundering.
'Merchants' who launder money
Huione Guarantee is a Chinese-language online marketplace founded in 2021 by the Cambodian multinational Huione Group.
The platform's use terms state that it is not liable for what is sold, adopting a neutral posture that does not include cracking down on illegal sales.
However, the platform still ensures transaction security by offering customers with an escrow system via Huione Pay, implying that it plays an active part in promoting the sale of unlawful commodities.
According to Elliptic's analysis, the absence of moderation, along with a strong payment framework, has made it easy for cybercriminals to buy and sell the following items/services:
- Launder the revenues of sextortion and "pig butchering".
- Accept victim payments and exchange them for cash, stablecoins, and Chinese payment app credits.
- Create cryptocurrency investment fraud websites for "pig butchering" businesses.
- AI-powered face-swapping software will be utilized to communicate with victims.
- Personal data, including contact information, was stolen and used to target future victims.
- Telecom equipment for facilitating fraud operations.
- Torture and control equipment found in fraud compounds.
Elliptic claims Huino Guarantee functions similarly to darknet markets and even implicates its employees in money laundering operations.
"Our findings indicate that Huione Group not only facilitates cyber scams by operating the Huione Guarantee marketplace but also suggest that one of its subsidiaries is actively involved in laundering proceeds of these scams." - Elliptic.
The researchers spotted conversations in the platform's chat groups in which a user asked for assistance in laundering $2 million from a scam. A representative from Huione International Payments, a division of Huione Pay, responded to the request and agreed to handle the process for a 10.5% fee.
According to Elliptic, Huione Guarantee is a key enabler of scam operators in South East Asia, and based on the data discovered, the merchant platform's payment system "is actively involved in laundering the proceeds of scams from around the world."
On Huino Guarantee, the blockchain analytics company acquired hundreds of cryptocurrency addresses managed by Huione companies and merchants.
Crypto exchanges and law enforcement can use them to track payments and prevent criminal funds from being laundered on the network.
Source: BleepingComputer
