Elliptic Exposes Huione Guarantee: Uncovers $11 Billion Crypto Scam

Published: Jul 10, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

Blockchain analytics firm Elliptic has exposed a crypto fraud ecosystem centered around Huione Guarantee. Huione Guarantee is an online marketplace based in Cambodia.  

Key findings:

  • Huione Guarantee-linked wallets have processed over $11 billion in crypto transactions since 2021.
  • The platform specializes in services for crypto scammers, including money laundering and fake crypto investment site creation.
  • Elliptic says blockchain transparency enables the tracking of illicit funds.

Elliptic’s research has uncovered the sophisticated operation that has become a hub for cryptocurrency-related fraud, particularly the infamous “pig butchering” scams. These scams involve building trust with victims before convincing them to invest in fraudulent crypto schemes. 

Also read: DigitalX’s Bitcoin ETF Set To Make Australian Securities Exchange Debut

Blockchain allowed Elliptic to trace the crypto

The platform’s cryptocurrency transactions were primarily conducted in USDT (Tether), according to Elliptic. Unlike traditional financial systems, the transparent nature of blockchain tech has allowed Elliptic to trace transactions worth over $11 billion since 2021.

Huione Guarantee’s merchants openly advertise crypto money laundering services. They offer to move digital assets across borders and convert them into fiat currencies, and balances on Chinese payment apps.  

Beyond financial services, the platform has become a one-stop shop for crypto scam infrastructure. Merchants offer services to create convincing fake cryptocurrency investment websites. They also provide personal data on potential victims and AI-powered tools to aid in identity deception.

The transparency of blockchain transactions has proven to be a double-edged sword for the operators of Huione Guarantee. While it allowed them to conduct business using cryptocurrencies, it also allowed firms like Elliptic to trace the funds

Elliptic’s investigation has led to the identification and labeling of hundreds of cryptocurrency addresses associated with Huione companies and their merchants. 

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.