Huione Pay, world’s ‘largest online black market’ loses banking license, 29.62M USDT on TRON frozen by Tether

Huione Pay, the financial arm of a Cambodian conglomerate accused of facilitating illicit online transactions, has been stripped of its banking license, the National Bank of Cambodia confirmed this week.

According to a Radio Free Asia exclusive, the company is part of Huione Group, an entity that oversees various financial and marketplace platforms. Among them is a Telegram-based marketplace that has been linked to an estimated $24 billion in illicit transactions, according to blockchain analytics firm Elliptic.

The National Bank of Cambodia said the reason it revoked Huione Pay’s license is that it was noncompliant with financial regulations. A spokesperson for the bank told Radio Free Asia (RFA) via email on Thursday that the company had failed to adhere to existing rules and recommendations. 

Still, the official did not specify the exact date of the license withdrawal or what consequences Huione Pay might face if it continues operations.

Allegations are false, says Huione Pay

RFA confirmed that Huione Pay has denied allegations of any criminal activity. Responding to the allegations made by Elliptic, which coined them as a facilitator of illicit transactions, the company claimed that its platform, HaoWang Guarantee, merely provides escrow services and does not conduct direct transactions. 

The company said its involvement in questionable sales was not to its knowledge, explaining that products such as “detention equipment” account for less than 0.01% of its listings and could be intended for legitimate law enforcement use.

“There is a contact email on our official website, which the so-called blockchain analysis company never contacted us to verify the information or asked us to delete the information before publishing the analysis report. Instead, they directly published article for intentionally attracted attention. Initially, after seeing the media report, we deleted this information as soon as possible. Please be aware of this, media friends.” Huione reiterated, taking a dig at the blockchain security analysts’ research.

Elliptic published its report on Huione in July 2024, calling them a “hub for online fraudsters” running scams on different industries en masse. The platform has allegedly provided a pathway for criminals to partake in illegal activities, including money laundering, identity theft, and the sale of technology used for fraud.

According to Elliptic, thousands of vendors operate on Huione Guarantee, offering services that enable organized crime groups to conduct scams worldwide. The security company’s researchers uncovered listings for stolen personal data, money laundering services, and even electrified shackles, allegedly used to restrain workers trafficked into scam compounds.

Following the report, Huione Guarantee altered its policies, explicitly prohibiting listings related to human trafficking, firearms, and terrorism. Still, naysayers assert that the company’s previous inaction allowed criminal enterprises to thrive on the platform.

According to more recent news, the platform’s operations were still live in January. Updated analysis reveals that cryptocurrency wallets linked to Huione Guarantee and its vendors have received at least $24 billion in transactions so far. Since the July report, monthly inflows have surged by 51%, while the platform’s user base has expanded to over 900,000.

Stablecoin issuer Tether in conjunction with authorities have frozen $29.62 million worth of USDT on the TRON blockchain associated with Huione Pay. The frozen funds are believed to be linked to transactions facilitated by Huione Pay, which the company suspects played a role in processing illicit payments. 

Tether continuous efforts to halt illicit transactions

In separate but related news, Tether has frozen $27 million in USDT linked to the sanctioned Russian crypto exchange Garantex. The exchange, which has been under US and European sanctions, announced on March 6 that Tether’s action had forced it to halt operations.

Garantex confirmed via Telegram that Tether blocked wallets containing over 2.5 billion rubles ($27 million), prompting it to suspend all transactions, including withdrawals. 

The exchange’s website is currently under maintenance, and law enforcement agencies, including the US Secret Service, Dutch National Police, and German Federal Criminal Police have seized its domain.

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