According to a report by Elliptic, the Chinese marketplace Huione Guarantee is being used to launder money received from online scams, including the “Pig Butchering” scheme.
The “Pig Butchering” scheme is a type of fraud where victims are persuaded to invest money on fake websites with promises of high returns. The fraud is only revealed when victims try to withdraw their funds, by which time the money is already in the hands of scammers.
It has been reported that at least $11 billion has flowed through sellers on Huione Guarantee, some of whom are linked to various cybercriminal activities such as creating fake investment websites, selling personal data, and laundering money.
Huione Guarantee is a Chinese marketplace launched in 2021 and owned by the Huione Group, a Cambodian conglomerate. The platform’s terms state that it is not responsible for the goods sold, taking a neutral stance and not intervening in illegal transactions. However, transactions are ensured to be safe through an escrow system provided by Huione Pay, making Huione Group actively involved in transactions involving illegal goods.
According to Elliptic’s research, the lack of moderation on Huione Guarantee, combined with a secure payment system, has created an environment favorable for cybercriminals to buy and sell various goods and services. Some of the offerings include:
- Earning income from scams like sextortion and “Pig Butchering”
- Accepting payments from victims and converting them to cash, stablecoins, and loans from Chinese payment apps
- Creating fake cryptocurrency investment sites for “Pig Butchering”
- AI software for impersonating individuals in communications with victims
- Selling stolen personal data for targeted fraud
- Telecommunication equipment for facilitating fraudulent activities
- Equipment for torture and control used in fraudulent operations
Elliptic also claims that Huione Guarantee operates similarly to Darknet markets and even involves its employees in money laundering activities. Researchers observed communications in platform chats where a user requested help in laundering $2 million. A representative from Huione International Payments, a part of Huione Pay, agreed to assist for a commission of 10.5%.
Based on the evidence collected, Elliptic suggests that Huione Guarantee is a key accomplice to scammers in Southeast Asia and is actively involved in