Crypto News- Elliptic reveals $11 billion scam network linked to Huione Guarantee

Crypto News- Elliptic uncovers $11 billion scam network involving Huione Guarantee

Crypto News- Huione Guarantee, an online marketplace operated by Cambodian conglomerate Huione Group, has been identified for its role in facilitating online scams across Southeast Asia. According to Elliptic’s latest research report, the platform has processed transactions exceeding $11 billion, with a significant portion tied to money laundering and cyber fraud. Dr. Tom Robinson, co-founder and chief scientist at Elliptic, emphasized that the team was able to track and quantify these cryptocurrency transactions due to the transparency of blockchain technology, as he explained in an interview with Cointelegraph.

Services Provided and Scam Operations

Huione Guarantee operates predominantly in Chinese and utilizes thousands of instant messaging app channels managed by different merchants.

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These merchants provide various services essential for running cyber scams, such as selling personal data, facilitating money laundering, and developing software and websites for scam operations. Additionally, the platform offers tools and equipment used in exploiting and mistreating workers in scam facilities.

While the marketplace accepts payment methods like bank transfers and payment apps, it predominantly relies on Tether (USDT), a cryptocurrency that is more traceable compared to traditional fiat currencies.

Elliptic’s recent report on Huione Guarantee has identified and labeled hundreds of cryptocurrency addresses linked to the platform and its merchants.

Dr. Robinson emphasized to Cointelegraph the importance for businesses to utilize blockchain analytics to verify that they or their customers are not engaging with entities like Huione Guarantee.

Elliptic Warns: AI-Powered Crypto Crimes Are in Their Infancy

In its 2024 report, Elliptic emphasized the growing utilization of artificial intelligence (AI) in illegal endeavors, encompassing state-backed cyber assaults and scams employing deepfake technology.

Instances of fraudulent activities include the emergence of deepfake videos featuring notable figures such as Elon Musk and former Singaporean Prime Minister Lee Hsien Loong.

Discussions on dark web forums highlighted strategies using AI to decode cryptocurrency wallet seed phrases and circumvent authentication mechanisms.

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