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The illicit online marketplace known as Huione Guarantee has experienced a staggering 51% growth in its monthly inflows over the past six months, according to a recent report by crypto compliance firm Elliptic. This surge follows the launch of its own USD stablecoin, which has attracted a significant number of users and transactions.
Key Takeaways
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Huione Guarantee is now considered the largest illicit online marketplace ever, with over $24 billion in transactions.
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The platform has seen its user base grow to more than 900,000.
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The launch of the USDH stablecoin in September has been a major factor in this growth.
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Huione Guarantee has been linked to money laundering and cyber scams, raising concerns among regulators.
Overview of Huione Guarantee
Huione Guarantee, which has recently rebranded to Haowang Guarantee, has been labeled as the largest online illicit marketplace by Elliptic. The platform has reportedly facilitated a wide range of illegal activities, including money laundering and cyber scams, making it a focal point for law enforcement and regulatory scrutiny.
The marketplace's growth has been particularly notable since the launch of its USDH stablecoin in September. This stablecoin was designed to circumvent regulatory oversight and asset-freezing capabilities that are common with other stablecoins, such as Tether's USDT. The USDH stablecoin is issued on multiple blockchains, including Ethereum, BNB Chain, and Tron, further enhancing its accessibility and appeal to users engaged in illicit activities.
Growth Metrics
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Monthly Inflows: Increased by 51% in the last six months.
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Total Transactions: Over $24 billion to date.
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User Base: Surged to more than 900,000 users.
Regulatory Concerns
The rapid growth of Huione Guarantee has raised alarms among regulators and cybersecurity experts. Elliptic's report highlights that the platform has become a key enabler of cyber scam operations, particularly in Southeast Asia. The firm noted that thousands of vendors are offering services related to money laundering, stolen personal data, and other items necessary for conducting online fraud on an industrial scale.
In July, Tether froze one of Huione Pay's USDT accounts due to its connections with the North Korean Lazarus Group, a notorious hacking organization. This incident prompted the launch of the USDH stablecoin, which aims to provide a more stable and less regulated alternative for users.