Huione Guarantee, an online marketplace in Cambodia, has been under scrutiny for facilitating illicit activities and criminal financing through the use of cryptocurrency payments, particularly Tether’s USDT. The marketplace, which is owned by the Huione conglomerate associated with Cambodia’s ruling family, serves as an aggregator for buyers and sellers across various messaging platforms.
According to a report by Elliptic, the marketplace enables the trading of a wide range of products and services, including stolen credit card details, web development services for scam websites, and equipment used for coercive activities at scam job sites. These goods and services are exchanged for cryptocurrency or traditional payment methods, with Huione Guarantee overseeing the transactions as a guarantor or escrow provider to prevent fraud.
Money laundering is one of the most prevalent illicit services offered on the platform, with criminals utilizing the marketplace to transfer funds to money launderers in exchange for a fee. The fee charged is based on the severity of the criminal activity involved in obtaining the funds. These services are not limited to Cambodian criminals, as individuals from other countries also use the marketplace to convert illegal funds into crypto, cash, or payments through Chinese applications.
The report highlighted that many merchants on the marketplace openly advertise money laundering services, which involve accepting payments from global victims, transferring the funds across borders, and converting them into various assets such as cash, stablecoins, and Chinese payment applications. The marketplace’s operations bear a resemblance to darknet markets and are overseen by Hun To, a relative of Cambodia’s prime minister, Hun Manet. Australian authorities have accused To of trafficking large quantities of heroin and providing money laundering services to prominent criminal networks.
In addition to crypto payments, Huione Guarantee integrates its native payment network, Huione Pay, to facilitate criminal financing. Representatives of the marketplace promote money laundering services through the payment network, earning substantial profits exceeding 10% of the laundered funds. The involvement of such a prominent marketplace in illicit activities raises concerns about the regulation and oversight of online platforms that enable criminal transactions.
The prevalence of illicit services on platforms like Huione Guarantee underscores the challenges faced by authorities in combating online criminal activities. The use of cryptocurrency and digital payment systems has made it easier for criminals to engage in money laundering and other illegal activities across borders. As law enforcement agencies and regulatory bodies strive to address these issues, greater cooperation and vigilance are needed to prevent online marketplaces from becoming hubs for illicit transactions.