Over $35 million in stolen funds from the infamous $305 million DMM Bitcoin hack have been laundered via Huione Guarantee, an online marketplace operated by the Cambodian conglomerate Huione Group.
It is interesting to note that this platform is part of a company linked to the Cambodian ruling family and has emerged as a significant hub for illicit funds in Southeast Asia, frequently utilized by criminal organizations, including pig butchering gangs.
DMM Hack Funds Through Huione Guarantee
Over the weekend, stablecoin issuer Tether took decisive action by blacklisting a wallet holding 29.6 million USDT on Tron, linked to Huione. As noted by prominent on-chain sleuth ZachXBT, approximately $14 million flowed into this exact wallet from the DMM Bitcoin hack over just three days.
Suspicions point to North Korea’s notorious Lazarus Group, known for similar laundering techniques and off-chain indicators, which could be behind the attack.
ZachXBT further explained that the laundering pathway involved depositing Bitcoin from the hack into a mixer, withdrawing the tokens, bridging funds to Ethereum or Avalanche via platforms like THORChain, Threshold, and the Avalanche bridge, swapping for USDT, and finally bridging to Tron via SWFT before transferring to Huione.
Notably, ZachXBT previously found that millions from the $31 million Fintech investment fraud scheme were funneled to Huione.
Huione: Hub for Crypto Scammers, Torture Equipment?
Last week, crypto tracing firm Elliptic uncovered the extensive use of Huione Guarantee – a deposit and escrow service for peer-to-peer transactions that enables users buy and sell over Telegram with popular stablecoin USDT – by crypto scammers.
Elliptic estimates that the majority of transactions on Huione Guarantee, based primarily on public Chinese-language advertisements, support pig butchering operations.
The marketplace also provides various scam-enabling products, including equipment used to imprison and torture workers in scam compounds. Advertisements frequently feature items like tear gas, electric batons, and electronic shackles, with references to controlling “runaway dogs” – a derogatory term for the workers in these compounds.