Huione, company behind largest illicit online marketplace, launches stablecoin: report

Huione Group, a Cambodian conglomerate linked to the largest illicit online market, has launched its own stablecoin, USDH.

The news comes via an Elliptical report and comes despite ongoing scrutiny on its subsidiary Huione Guarantee, a Telegram-based platform that caters to cybercriminals in Southeast Asia.

Elliptic’s research found that Huione Guarantee facilitated at least $24 billion in transactions, dwarfing other illicit marketplaces like Hydra. The platform is known for supporting hog-slaughter scams and transnational organized crime, with vendors offering money laundering services, stolen data and tools for large-scale fraud.

Huione Guarantee has also come under severe criticism for its links to abusive practices in human trafficking and fraud settlements.

This stablecoin will defy restrictions

Huione Group launched USDH in September 2024 to overcome regulatory and financial restrictions. The stablecoin, backed by the US dollar, is being marketed as a way to avoid regulatory oversight, allowing users to avoid freezes common to traditional stablecoins like USDT.

Source: Elliptical

The launch coincides with Huione Warranty’s ongoing efforts to rebrand itself under the name “Haowang Warranty” while maintaining ties with the Huione Group.

In addition to the stablecoin, the conglomerate has also introduced its own private blockchain, Huione Chain, as well as a crypto exchange, decentralized exchange and messaging application. These developments are expected to reduce the group’s dependence on external platforms such as Telegram and increase its control over illegal transactions.

Elliptic’s findings provided crypto exchanges and law enforcement with tools to monitor and block transactions linked to Huione’s operations. Despite these efforts, Huione Guarantee continues to grow with increasing cryptocurrency inflows and increasing number of users.