Huione Group Launches Stablecoin Amidst Scrutiny

Cambodian conglomerate Huione Group, linked to the largest illicit online marketplace, has introduced its own stablecoin, USDH. This development comes amidst ongoing scrutiny of its subsidiary, Huione Guarantee, a Telegram-based platform notorious for serving cybercriminals in Southeast Asia.

Illicit Transactions and Scrutiny

According to research by Elliptic, Huione Guarantee has facilitated over $24 billion in transactions, surpassing other illicit marketplaces like Hydra. The platform has been known for supporting pig butchering scams and transnational organized crime, with vendors offering money laundering services, stolen data, and tools for large-scale fraud.

Furthermore, Huione Guarantee has faced significant criticism for its links to human trafficking and abusive practices at scam compounds.

USDH Stablecoin and Regulatory Constraints

To counteract regulatory and financial constraints, Huione Group launched USDH in September 2024. The stablecoin, backed by the US dollar, is marketed as a way to avoid regulatory oversight, allowing users to evade freezes commonly seen with traditional stablecoins like USDT.

Some key features of USDH include:

  • Backed by the US dollar
  • Marketed as a way to avoid regulatory oversight
  • Allows users to evade freezes commonly seen with traditional stablecoins

Huione Chain and Expanding Operations

In addition to the stablecoin, the conglomerate has introduced Huione Chain, its proprietary blockchain, alongside a crypto exchange, decentralized exchange, and messaging app. These developments are expected to reduce the group’s reliance on external platforms like Telegram and enhance its control over illicit transactions.

“This move is likely an attempt by Huione Group to further expand its operations and evade law enforcement.”

As Huione Guarantee continues to grow, with rising cryptocurrency inflows and an increasing number of users, law enforcement agencies and crypto exchanges are working to monitor and block transactions linked to Huione’s operations.

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