Huione Rises as the Darknet’s Leading Marketplace

Huione, suspected to be the mastermind behind one of the darknet’s largest illegal marketplaces, is reportedly using its native USDH stablecoin and ChatMe communication platform to fortify its operations. These tools appear designed to shield financial assets from seizures and reduce the platform’s vulnerability to regulatory enforcement.

Huione’s stablecoin, USDH, operates outside the typical restrictions placed on regulated digital currencies like USDT. Unlike traditional stablecoins, USDH is not subject to freezing or oversight by authorities, offering users a higher degree of transactional independence.

USDH runs on Ethereum, Binance Smart Chain (BSC), and Tron, forming an integral part of Huione’s blockchain ecosystem. This ecosystem also includes a decentralized exchange, a proprietary crypto wallet, and Huione Chain (Xone).

In addition to USDH, Huione Group employs ChatMe, a messaging app with features akin to Telegram, to bolster communication across its platform.

Since July 2024, blockchain analytics firm Elliptic has tracked transactions on the Huione Guarantee marketplace, uncovering connections between the platform, Huione Group, and Cambodia’s ruling family. Analysts also note that Huione Group has since moved to distance itself from Huione Guarantee, which has rebranded as Haowang Guarantee.

Huione Guarantee Linked to $24B in Crypto Transactions and Illicit Markets

According to on-chain analysis by Elliptic, Huione Guarantee has processed more than $24 billion in cryptocurrency transactions and is tied to billions of dollars in gambling-related activity. This makes it the largest known platform facilitating illicit crypto exchanges.

Top Platforms for Illicit Crypto Transactions by Total Funds Handled.

Source: elliptic.co

The platform is utilized by thousands of vendors offering a range of illegal goods, from ransomware tools to stun collars, operating primarily through a network of chatbots and private Telegram channels.

However, not all transactions on this platform can be definitively classified as criminal, highlighting the nuanced and complex nature of its ecosystem.

Huione Guarantee initially asserted that it was not responsible for the items traded on its platform. However, following the release of an Elliptic report, the platform stated that certain types of commerce are prohibited, including those linked to human trafficking, firearms, and terrorism.

In July, Elliptic published a report tying Huione to several pig butchering schemes—a term used to describe sophisticated investment scams where victims are manipulated into trusting fraudsters, ultimately leading to significant financial losses.