Huione Guarantee: Largest Illicit Crypto Marketplace Grows Rapidly
In a chilling revelation, crypto compliance firm Elliptic has labeled Huione Guarantee, recently rebranded as Haowang Guarantee, as “the largest online illicit marketplace to have ever operated.”
The platform, embroiled in allegations of money laundering and cyber scams, has seen explosive growth, fueled by its controversial launch of a dollar-backed stablecoin, USDH, in September.
Rapid Growth Despite Scrutiny
Elliptic’s latest report, published on Jan. 14, sheds light on the meteoric rise of Huione Guarantee. Since July, the platform’s monthly inflows have surged by 51%, propelling total transactions to over $24 billion. The number of users has also skyrocketed, exceeding 900,000.
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The platform’s expansion is linked to its aggressive rollout of crypto-related products, including a blockchain called Huione Chain (Xone Chain), a decentralized exchange (DEX), and a messaging app aimed at reducing reliance on platforms like Telegram.
USDH Stablecoin Fuels Huione Guarantee Growth
The September launch of USDH, a stablecoin designed to bypass regulatory oversight, has been a significant catalyst for Huione’s growth. Unlike other stablecoins such as Tether (USDT), USDH lacks asset-freezing capabilities, making it a haven for illicit transactions.
USDH issuance spans multiple blockchains, including Ethereum, BNB Chain, and Tron, raising concerns about its widespread usage in fraudulent activities. This move came after Tether froze one of Huione Pay’s USDT accounts in July, citing links to the North Korean Lazarus Group.
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Elliptic highlighted USDH’s deliberate design to avoid regulatory scrutiny, stating it has become a preferred tool for cybercriminals.
Efforts to Distance Itself from Allegations
In response to growing scrutiny, the platform has rebranded to Haowang Guarantee, attempting to dissociate itself from its parent entity, Huione Group. However, Elliptic’s research exposes a grim reality: thousands of vendors on the platform offer services such as money laundering, stolen personal data, and tools for industrial-scale online fraud.
Elliptic’s findings paint a grim picture, noting, “Perhaps no other single entity bears as much responsibility as Huione Guarantee for the global cyber scam epidemic, which has ruined countless lives.”
A Hub for Illicit Activities
The introduction of the Huione Chain (Xone Chain) and its DEX has further solidified the platform’s position in the crypto space. Users can swap USDH for other crypto assets, providing a seamless gateway for illicit financial flows.
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Elliptic describes the marketplace as a “key enabler of cyber scam operations in Southeast Asia,” contributing significantly to the global cyber scam epidemic.
Huione Guarantee’s staggering growth highlights the challenges regulators and law enforcement face in combating crypto-related crime. The rise of stablecoins like USDH, designed explicitly to evade oversight, bring attention to the urgent need for stricter international cooperation and enhanced blockchain monitoring.
With $24 billion in transactions and a growing user base, Haowang Guarantee represents a stark reminder of how blockchain technology can be misused when regulatory gaps exist.
As the crypto industry continues to evolve, experts warn that illicit platforms like Haowang Guarantee could proliferate if left unchecked. Elliptic’s findings are a call to action for governments and compliance firms to prioritize transparency and accountability in the digital asset space.
For now, Huione—or Haowang Guarantee—remains a dark force in the crypto world, its influence growing even as global efforts to curb its operations intensify.
