UN Report Says Crypto Powers Illegal Cambodian Marketplace Called Huione Guarantee
A newly released United Nations Office on Drugs and Crime report exposes Huione Guarantee, a Phnom Penh, Cambodia based online marketplace, as a major hub for illegal activities fueled by cryptocurrencies. Operating primarily through Telegram, this platform has processed at least $24 billion in cryptocurrency transactions from 2021 to 2024, supporting scams, money laundering, and human trafficking. Its sophisticated use of cryptocurrencies, including a custom stablecoin and proprietary blockchain it has built for it's illicit activities, has made it a cornerstone of Southeast Asia’s cybercrime epidemic.
Huione Guarantee connects nearly a million users and thousands of vendors, offering tools for fraud, malware, and equipment tied to organized crime. The platform’s financial scale rivals legitimate systems, with a 51% surge in monthly cryptocurrency inflows since July 2024. Its ties to the Huione Group, a Cambodian conglomerate linked to the ruling Hun family, provide operational stability and political cover.
Cryptocurrency Fuels Huione’s Global Reach
The platform relies heavily on Tether for transactions, leveraging its stability to facilitate cross-border payments for scam centers in Myanmar and Cambodia. However, since Tether can freeze addresses and block transactions, Huione has also launched its own custom built US Dollar-backed stablecoin, USDH, to evade regulatory oversight and protect against asset freezes. This stablecoin, paired with a proprietary blockchain called Huione Chain, creates a decentralized ecosystem that shields illicit activities from authorities. Additionally, Huione operates a cryptocurrency exchange and trading app, integrating illicit funds into the global financial system.
Huione’s operations extend far beyond Southeast Asia, with trafficked workers from over 50 countries and victims targeted worldwide. The platform supports “pig butchering” scams, where victims are lured into fake cryptocurrency investments, contributing to $37 billion in regional fraud losses in 2023. Its role in a Singapore money laundering case, involving $2.3 billion in seized assets including Tether, highlights its global financial impact. The platform’s rebranding to Haowang Guarantee reflects efforts to dodge scrutiny, though its core activities remain unchanged.
The report emphasizes the challenge of tracking Huione’s cryptocurrency transactions due to their pseudonymous nature and advanced technological integration. Authorities struggle to disrupt the platform’s blockchain and exchange, which enhance the efficiency of fraud and money laundering. Strengthening legal frameworks and fostering international cooperation are critical to addressing this growing threat. Enhanced monitoring tools and law enforcement training are also needed to tackle Huione’s digital infrastructure.
Huione Guarantee’s use of crypto underscores the evolving nature of organized crime and cryptocurrencies. By building a self-sufficient ecosystem with its own stablecoin and blockchain, the platform poses a unique challenge.