Crypto scams, particularly the practice known as “pig butchering,” have become a booming criminal industry, raking in billions of dollars annually. A recent investigation by crypto-tracing firm Elliptic uncovered a Cambodian online platform called Huione Guarantee that serves as a hub for various services that support the pig butchering ecosystem.
Huione Guarantee operates as a deposit and escrow service for peer-to-peer transactions using the cryptocurrency Tether on the Telegram messaging service. Elliptic’s report revealed that $11 billion in transactions have been traced on the platform since its inception, with $3.4 billion recorded just this year. The majority of these transactions are linked to pig butchering scams, where victims are tricked into transferring cryptocurrency to scammers.
The platform offers a range of tools and services to facilitate these scams, including GPS tracking shackles and electric batons used to coerce victims into working in scam operations. Additionally, Huione Guarantee provides data on potential targets, fake investment websites, deepfake face-altering services, and money laundering options to obfuscate the origins of stolen funds.
Despite the brazen nature of these criminal transactions taking place on a public platform, Huione Guarantee is operated by Huione Group, a Cambodian financial conglomerate with ties to the country’s ruling family. The platform’s director, Hun To, is the cousin of Cambodia’s prime minister and has been linked to alleged scam operations. The platform’s ties to Chinese organized crime further complicate the issue, as pig butchering revenue is often laundered through decentralized methods involving individual Chinese citizens.
The prevalence of pig butchering scams, particularly in Southeast Asia, has been exacerbated by the economic impact of the Covid-19 pandemic. With tourism plummeting, many pig butchering operations have taken root in hotels and resorts owned or financed by Chinese companies. These operations often rely on forced labor from individuals who have been trafficked from neighboring countries.
Elliptic’s Robinson suggests that targeting Huione Guarantee’s leadership with international sanctions could disrupt the criminal industry’s operations. By shedding light on the platform’s illicit activities and its ties to powerful entities, there is an opportunity to dismantle a key player in the pig butchering ecosystem.
In conclusion, the prevalence of pig butchering scams highlights the need for increased scrutiny and regulation in the cryptocurrency space. Platforms like Huione Guarantee serve as enablers for these criminal activities, and addressing the issue requires a coordinated effort from law enforcement agencies, cybersecurity experts, and policymakers. By exposing these illicit operations and holding those responsible accountable, we can work towards a safer and more secure financial landscape for all.
