Significant Centralized Exchanges Exposed to Nearly $1 Billion in Huione-linked Transfers
New data from Global Ledger reports that nearly $1 billion in USDt transfers has flowed into major centralized exchanges (CEXs) linked to the wallets associated with Huione. This occurred even after the illicit marketplace was allegedly shut down. The US Financial Crimes Enforcement Network (FinCEN) had declared Huione as a primary money laundering concern under the PATRIOT Act on May 1. However, forensics experts are divided on the extent of the platform’s shutdown.
Global Ledger noted that it observed $10.13 billon in Tether USDt transactions on Tron and $219 million on Ethereum in Huione-linked wallets between May 1 and June 17. Ultimately, $942.9 million flowed into CEXs. Yury Serov, investigations lead at the Swiss blockchain analytics firm, indicated to Cointelegraph that the activity from Huione-linked wallets continues exposing major exchanges, often through indirect routes.
Obscuring the Original Source
According to Serov, Huione-associated funds could be routed via nested service providers, OTC desks, or layered transactions that obscure the original source. Although these methods can hide direct exchange interactions, the underlying movement patterns still lead to major centralized exchanges. This suggests continued operational use which indicates an ongoing exposure to Huione for major exchanges.
Huione and Its Associates
Huione, based in Cambodia and registered in Hong Kong, operates at least three known subsidiaries: Huione Guarantee, a Telegram-based illicit market platform; Huione Pay, a crypto and fiat payments service; and Huione Crypto, a centralized exchange. Huione Crypto registered in Poland in mid-2023 and continues to operate primarily out of Cambodia.
The group is associated with cybercrime groups such as North Korea’s state-sponsored Lazarus Group and pig butchering scams networks. Blockchain analytics firm Elliptic linked the group’s operations to Cambodia’s ruling Hun family.
The Status of Huione-linked Services
Despite the FinCEN action, multiple Huione-related websites and social channels have gone offline and reappeared under new domains. Nonetheless, the websites remain functional. The closure of Huione has resulted in the emergence of at least 30 new illicit marketplaces attempting to fill the gap it left behind.
The Uncertain Fate of Illicit Services
The takedown of an illicit service rarely stops criminal activity immediately. In many cases, services reappear under new branding or continue in stealth mode. For instance, Global Ledger identified at least $1.66 billion flowing from rebranded Grinex-linked wallets into centralized exchanges after Garantex, a Russia-linked crypto exchange, was sanctioned. On similar lines, eXch, a crypto swapping service with no KYC requirements, quietly resumed operations in stealth despite public takedown by German authorities.
Huione’s Continued Existence
Despite the shutdowns and following allegations, Huione continues its operations through indirect channels. It reportedly holds a 30% stake in Tudou, a leading successor to the Huione Guarantee marketplace. Wallet activity linked to Huione Pay and its crypto exchange services highlights that the group has not disappeared from the blockchain landscape completely.
While the fate of such illicit platforms seems uncertain, authorities and concerned organizations continue their fight against money laundering and illegal activities. It is yet to be seen how stringent measures can fully eradicate or deter these activities in the largely unregulated crypto landscape.
