A group with ties to the family of Cambodian ruler Hun Sen has been accused of being involved in a multibillion-dollar cryptocurrency scam.
Online marketplace Huione Guarantee facilitated at least $11 billion worth of transactions for Southeast Asian cryptocurrency scam operators, according to blockchain analytics firm Elliptic.
Huione operates similarly to darknet markets that facilitate online scams in Southeast Asia. The market operates through thousands of messaging app channels, each operated by a different merchant, and primarily uses the USDT stablecoin for payments, according to a report released by the company on Wednesday.
“When blockchain analysts choose to make their findings public without engaging with us directly, it limits our ability to act quickly to freeze illicit activity associated with our stablecoin,” a Tether spokesperson told Decrypt. “This becomes a bystander effect, where individuals observe wrongdoing but choose to document it in order to increase social media engagement and visibility.”
Huione is run by the Huione Group, which has ties to Cambodia’s ruling Hong family. The group’s illegal activities are not limited to the marketplace, with another business, Huione International Payments, suspected of laundering fraud proceeds around the world.
Elliptic flagged hundreds of crypto addresses associated with Huione’s activity to help exchanges and law enforcement combat these scams.
Huione is part of Cambodian conglomerate Huione Group, which is allegedly at the centre of the “pig-killing” scam, the company said.
These scams involve scammers establishing online relationships with victims and convincing them to invest, only to siphon funds from them. Other scams include Ponzi schemes, impersonation fraud and sextortion, the blockchain analytics firm said.
Elliptic’s investigation also linked Huione to transactions in money laundering services, technology and data necessary to carry out these scams.
One of the directors of the group's subsidiary Huione Pay is said to be Hong Thu, a cousin of Cambodian Prime Minister Hun Manet, who has been accused by Australian authorities of heroin trafficking and money laundering and has links to Chinese organised crime.
A spokesman for Cambodia's prime minister's office did not immediately respond to a request for comment.
The report also highlights serious human rights violations linked to its activities.
The scams, primarily located in Myanmar, Laos and Cambodia, are prison-like premises where trafficked workers from China, Vietnam and the Philippines are forced to carry out the schemes in harsh conditions.
Reports say these workers are often tortured and some even commit suicide.
Elliptic found ads on Huione for equipment used to control and punish these workers, including electric batons and electronic shackles.
Elliptic said the true number of illegal transactions is likely higher due to incomplete merchant turnover and crypto wallet data.
