Key Highlights
- Chainalysis found that the Huione-linked crypto ecosystem handled more than $70 billion in transactions over the last five years.
- Huione Guarantee operated as a Telegram-based marketplace where criminals could buy scam kits, fake identities, money mule services, and laundering tools.
- The DOJ seized key infrastructure linked to Huione, while FinCEN and law enforcement agencies expanded efforts to disrupt the group’s operations.
Chainalysis, a blockchain analytics firm, detailed an underground crypto scam network linked to the Huione Group, a Cambodia-based conglomerate accused of enabling global fraud operations.
In an X post on Wednesday, the firm stated that the network functioned as a crypto-based services marketplace where illicit tools and fraud-related services were traded among users worldwide.
Instead of one group doing all the fraud, different sellers offered different illegal services. They sell tools for scams, fake identities, money mule networks, and services that help move stolen crypto. Chainalysis estimated that the ecosystem processed more than $70 billion in crypto transactions over the past five years.
The user base included fraud shops, scam service providers, and other vendors offering tools used in online fraud and money laundering operations
Marketplace for scam services
At the center of the network was Huione Guarantee, also called Haowang Guarantee. According to Chainalysis, it operated as a P2P marketplace that ran mainly on Telegram. It worked like a meeting point where criminals could buy and sell illegal services.
A person running a scam could go there and buy tools like stolen identity data, malware tools, or even full scam “kits” used in romance and investment fraud. It also offered laundering services to clean stolen money. The platform acted as an escrow system, meaning it held payments until both sides completed the deal. It also helped settle disputes between buyers and sellers when problems came up.
Billions flow through laundering networks
Chainalysis found that the ecosystem formed part of a broader Chinese-language money laundering network. In 2025 alone, the network reportedly processed approximately $16.1 billion in illicit funds.
According to the report, the network accounted for more than 20% of global crypto laundering activity, with a significant portion of the funds linked to pig-butchering scams. These schemes typically involve fraudsters building trust with victims through fake relationships or investment opportunities before convincing them to transfer money.
Once stolen, the funds were moved through multiple wallets and services to obscure their origins.
U.S. authorities target infrastructure
The U.S. Department of Justice said in a recent statement that Huione’s operations extended beyond online marketplaces. The department confirmed that a cloud computing account was seized because it hosted backend systems for Huione subsidiaries.
According to authorities, the account supported systems used to transfer, conceal, and process billions of dollars before funds entered the traditional financial system.
Assistant Attorney General A. Tysen Duva said the seized system was a major part of the network’s power. He described it as a “technological backbone” that helped move and hide money from fraud. He said, “Today’s seizure strikes a blow against one of the world’s most prolific criminal marketplaces,” pointing to the scale of harm caused by the system.
Operation Riptide expands crackdown
The platform came under increased pressure in May 2025 when Telegram banned its channels. Huione then announced it would shut down operations, but activity did not fully stop. New platforms quickly appeared to replace it.
Later, the U.S. Treasury’s FinCEN labeled Huione as a “primary money laundering concern” and extended restrictions to new versions of the service to stop it from rebranding and returning under new names.
The investigation became part of Operation Riptide, an FBI-led initiative targeting online fraud networks. Chainalysis, Elliptic, and Google’s cybercrime team also assisted the effort by tracing transaction flows and identifying associated wallets and services.
Also Read: Prince Group Hit With U.S. Sanctions in Crypto Fraud Crackdown
