Cambodia’s Huione Group’s online marketplace, Huione Guarantee, has enabled over $11 billion in transactions linked to money laundering and cyber scams across Southeast Asia, according to a blockchain analytics firm Elliptic.
The report reveals that Huione Guarantee is a hub for merchants offering services tailored to cyber scam operators. This includes money laundering, software for fake investment sites, and even equipment used to imprison and control scam compound workers.
Elliptic’s analysis shows cryptocurrency wallets linked to Huione Guarantee and its merchants have processed the amount since 2021. While not all transactions are definitively illicit, the nature of advertised products and services strongly suggests the platform’s primary role is as an illicit marketplace.
The platform’s ties to organized crime appear to run deep. One of Huione Pay’s directors, Hun To, is a cousin of Cambodia’s prime minister. He has been linked to drug trafficking, money laundering, and Chinese organized crime.
Crypto laundering by Huione International Payments
Particularly troubling are indications that a subsidiary of Huione Pay, Huione International Payments, actively launders scam proceeds. Elliptic found evidence of the company offering to handle millions in fraud proceeds for a 10.5% fee.
Cyber scam operations have increase in size in the last half-decade. It was due to the support of businesses offering money laundering and technical assistance. Many fraudulent activities stem from “compounds” located in nations like Myanmar, Laos, and Cambodia. Traffickers often exploit employees, forcing them to carry out fraud.
Cryptocurrencies, such as USDT, pose an exposure for law enforcement efforts due to their traceable nature through blockchain analytics. This unique characteristic can stop illicit cash flows and assist in criminal investigations. The scenario sheds light on the complex web of crime, technology, and cryptocurrencies driving a surge in cyber scams throughout Southeast Asia.
