
Cambodia’s $49B Crypto Scam Empire: Inside Huione Guarantee and Government Ties
Cambodia’s Crypto Scam Empire: Human Trafficking, Government Ties, and the Rise of Huione Guarantee
Cambodia has emerged as the epicenter of a global cybercrime network, where cryptocurrency-fueled scams, human trafficking, and political complicity converge. At the heart of this illicit ecosystem is Huione Guarantee, a platform that has processed over $49 billion in cryptocurrency transactions since 2021, facilitating a range of fraudulent activities from romance scams to money laundering.
A $49 Billion Scam Marketplace
Huione Guarantee, operated by the Cambodian conglomerate Huione Group, functions as a peer-to-peer escrow service primarily through Telegram. It has become a central hub for cybercriminals, offering services such as money laundering, sale of stolen data, and tools for executing scams like “pig butchering”—a scheme where victims are lured into fake romantic relationships and convinced to invest in fraudulent ventures.
The platform’s rapid growth is alarming. Monthly inflows have surged by 51% since July 2024, and the user base has expanded to over 900,000. Huione Guarantee has also launched its own stablecoin, USDH, to circumvent financial regulations and asset seizures.
Government Complicity and Political Ties
Investigations have revealed that high-ranking Cambodian officials are entangled in these fraudulent operations. Hun To, cousin of Prime Minister Hun Manet, is a director at Huione Pay, a subsidiary of Huione Group. Deputy Prime Minister Sar Sokha has also been linked to major scam compounds.
The United Nations Office on Drugs and Crime (UNODC) has warned that Cambodia is a focal point for crypto-based fraud, with scam operations expanding into rural provinces and other regions globally.
Human Trafficking and Forced Labor
The scam industry in Cambodia is not only a financial threat but also a humanitarian crisis. An estimated 350,000 individuals are trapped in scam compounds across Southeast Asia, subjected to forced labor and inhumane conditions. These victims are often trafficked from neighboring countries and coerced into conducting scams under threats of violence.
Disturbingly, Huione Guarantee has listings for equipment like electric batons and GPS-tracking shackles, used to control and punish these workers.
International Crackdown and Evasion Tactics
In response to mounting evidence, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has proposed banning Huione Group from accessing the U.S. financial system, citing its role in laundering at least $4 billion in illicit funds, including $73 million linked to North Korean cybercriminals.
Telegram has also taken action by banning channels associated with Huione Guarantee, leading to the platform’s rebranding as Haowang Guarantee.
The Global Spread of Crypto Scams
The fraudulent activities originating in Cambodia are spreading globally, with operations extending into Africa, Latin America, and the Middle East. These scams exploit regions with weak law enforcement and regulatory frameworks, making international cooperation crucial in combating this growing threat.
Final Thoughts
The convergence of cryptocurrency, human trafficking, and political corruption in Cambodia’s scam industry presents a complex challenge that transcends borders. Addressing this issue requires coordinated international efforts, stringent regulatory measures, and a commitment to human rights to dismantle these networks and bring perpetrators to justice.