The global fraud ecosystem continues to expand, equipping criminals with increasingly sophisticated tools for deceiving victims and laundering funds. As fraudulent operations have grown more lucrative, an infrastructure has emerged offering a comprehensive suite of services—from creating fake social media profiles to selling victim databases and facilitating cryptocurrency transfers. Among the largest platforms in this space is Huione Guarantee, which has reportedly facilitated operations on the gray market amounting to $49 billion since 2021.
According to research conducted by Elliptic, Huione Guarantee has not only increased transaction volumes by 51% since the last analysis in July 2024 but has also diversified its services by introducing a messenger, a cryptocurrency exchange, and its own stablecoin. Experts suggest that these innovations enhance the platform’s profitability while shielding it from potential law enforcement actions.
Elliptic identified Huione Guarantee as a pivotal hub for scaling fraudulent schemes. Shutting down the platform could substantially curtail online fraud and reduce the number of potential victims.
Founded in 2021, Huione Guarantee initially gained prominence through its association with scams prevalent in Southeast Asia. These include schemes such as “Pig Butchering,” where victims are lured into fake investment projects with long-term promises of high returns. The platform provides deposit and escrow services, enabling fraudsters to transfer funds securely. Consequently, it has become a “one-stop shop” for criminals, offering tools such as deepfake generators, fake investment websites, and victim contact databases.
Huione Guarantee heavily utilizes the messaging platform Telegram, where it organizes groups and bots that attract tens of thousands of participants. Elliptic’s findings reveal that most transactions on the platform are conducted using the stablecoin Tether, which ensures transaction stability and relative anonymity.
Following Elliptic’s 2022 report, Huione Guarantee issued a statement claiming to be merely an “informational and escrow service,” with all offerings provided by third-party vendors. Nevertheless, Elliptic determined that the platform’s core function remains the laundering of fraud-derived funds. Furthermore, the platform has continued to evolve, introducing the USDH stablecoin, marketed as “regulator-independent” and “freeze-resistant.”
Despite its rapid development and efforts to bolster its independence, Huione Guarantee still relies on third-party infrastructure, including Telegram and Tether. Researchers emphasize that these dependencies present opportunities to disrupt its operations. However, if the platform successfully transitions to proprietary technologies, combating it will become significantly more challenging.
Elliptic also uncovered Telegram bots linked to automated gambling systems, which may be used to launder money. These games appear rudimentary, with bets occurring at regular intervals, indicating automation. One such bot is estimated to have processed approximately $6 billion.
Experts warn that Huione Guarantee could become “too big to shut down.” The platform is actively constructing its own ecosystem to minimize reliance on external services. Until this is achieved, law enforcement agencies may exploit its vulnerabilities. However, delays in action could render the platform impervious to external intervention.
Earlier, Chainalysis highlighted the scale of cryptocurrency operations on Huione Guarantee, which is reportedly closely tied to cybercrime and the Cambodian government. According to their report, over $49 billion in cryptocurrency transactions have passed through the platform since 2021. In July, Elliptic identified Huione Guarantee as a key player in pig-butchering scams, describing it as a guarantor or escrow provider for all transactions within this illicit industry.
