Huione Guarantee’s growth is linked to illicit activities, with the rise of USDH fueling its expansion - IcoHolder.
A recent report by crypto compliance firm Elliptic has unveiled the startling rise of Huione Guarantee, now recognized as “the largest online illicit marketplace to have ever operated.” In just six months, the platform’s monthly inflows surged by 51%, a growth largely fueled by the launch of its own USD-backed stablecoin, USDH, in September.
Elliptic’s analysis, published on January 14, reveals that the marketplace has facilitated over $24 billion in transactions, with a user base soaring beyond 900,000. This marks a disturbing trend, as Huione Guarantee’s growth has largely been linked to criminal activities, including money laundering and cyber scams.
Previously known as Huione Guarantee, the platform has long been under suspicion for its role in facilitating online fraud. In July, Elliptic flagged the marketplace for hosting a range of illegal operations tied to money laundering and cybercrime. The latest report further highlights the platform’s involvement in cyber scams, with thousands of vendors offering stolen personal data, money laundering services, and other tools essential for large-scale online fraud.
As the platform’s influence expands, Elliptic has pointed out that Huione Guarantee has become a central player in the global cyber scam epidemic, which has wreaked havoc across Southeast Asia. The scale of its operations and its ability to shield transactions from regulatory oversight has raised alarm among cybersecurity experts worldwide.
One of the most significant developments fueling Huione Guarantee’s rapid expansion is the introduction of USDH, a dollar-pegged stablecoin that operates with greater freedom from regulatory restrictions compared to its competitors, such as Tether’s USDT. The launch came after Tether froze one of Huione’s accounts due to suspected ties with the North Korean Lazarus Group. USDH is designed to avoid asset freezing, giving Huione users a greater degree of anonymity and freedom to transact.
The stablecoin has been launched across several blockchains, including Ethereum, BNB Chain, and Tron. Despite its similarity in name, USDH should not be confused with the legitimate stablecoin from the Solana-based DeFi protocol Hubble.
Along with USDH, Huione has introduced a range of other crypto-related products, including a new blockchain, Huione Chain (Xone chain), and a decentralized exchange that facilitates the swapping of USDH for other crypto assets. In an effort to avoid detection and increase its control, the platform has also rolled out a private messaging service, eliminating the need for third-party apps like Telegram, which are commonly used by criminals for covert communications.
In a rebranding move to distance itself from its past, Huione Guarantee has also changed its name to Haowang Guarantee, further attempting to deflect attention from its criminal ties.
The rapid growth and shifting operations of Huione Guarantee highlight the increasing sophistication of illicit crypto platforms. As Elliptic concludes, the platform has become a “key enabler” of global cyber scams and a primary conduit for criminal networks, with Huione Guarantee’s reach and resources growing unchecked.
The platform’s success in evading law enforcement scrutiny could have far-reaching consequences, both for the world of cryptocurrency and for global cybersecurity efforts. As Huione Guarantee continues to expand, its role in the broader cybercrime landscape remains a cause for concern, with experts urging stronger regulations and more stringent oversight to curtail its rise.
