Cyber slaves, traffickers’ marketplace uncovered. $11 billion in suspicious transactions

The cryptocurrency world is once again at the center of a controversial scandal, with Cambodia-based marketplace Huione Guarantee being accused of being a hub for money laundering and other crimes, according to a report published Wednesday by blockchain analytics specialist Elliptic.

$11 billion in suspicious transactions

Since its launch in 2021, cryptocurrency wallets associated with Huione and its independent merchants have at least $11 billionElliptic considers this figure a conservative estimate, and while not all of these transactions are directly linked to fraudulent or illegal activity, the nature of Huione Guarantee’s transactions suggests that most of these payments are related to such activity.

Payment method used

Elliptic is a stablecoin Tether (USDT ) is one of the most popular payment methods on the platform, which also supports payment apps and bank transfers, which allows for quick transactions and, according to analysts, also reduces the possibility of money laundering.

Criminal Marketplace

In a six-page document, Elliptic investigators allege that Huione Guarantee’s so-called “neutral” marketplace was transformed into a criminal holding company, alleging that Huione had no knowledge of “certain customer activity” or the nature of financial flows on the platform because merchants ran their own instant messaging channels.

Connection with the Cambodian government

Another concern is the alleged ties between Huyone officials and Cambodia’s prime minister. Hun ManetThis relationship could further complicate any investigation or legal action against the company.

Reporting on a specific crime

Elliptic reported that the most serious allegation was that some traders were explicitly offering money laundering services. Sexual exploitation Scams, fraudulent schemes, malicious software. There are several screenshots of conversations between traders and customers that show people trying to launder the proceeds of a scam called “pig slaughter,” an investment fraud that uses social engineering to siphon funds from victims.

Fraudulent Compound

The report also includes accounts of electronic collars being used to confine exploited workers in “fraudulent facilities” in countries including Myanmar, Laos and Cambodia.United States Institute of Peace These industrial fraud camps, which rely on forced labor, have been found to be spreading rapidly across Asia.

Blockchain Censorship Resistance

Despite the censorship-resistant blockchain network facilitating global crime, Elliptic researchers note that “investigators and compliance teams are able to use blockchain analysis to proactively detect and disrupt USDT payments.” The company has identified and tagged “hundreds of cryptocurrency addresses” controlled by Huione companies, allowing exchanges and other companies to screen these transactions to prevent funds from being further laundered.

0 Comments

Leave a Comment