Major darknet marketplace Huione is reportedly still operating and growing, despite the shutdown of its website and Telegram channels.
Haowang Guarantee, formerly Huione Guarantee, said on May 13 that it was shutting down after the Telegram messaging service banned thousands of its associated accounts and channels.
However, Chainalysis said in a report on Thursday that the activity linked to the illicit marketplace since the so-called “shutdown” hasn’t declined.
“Our data shows that the platform continues to process billions of dollars worth of transactions, pointing to a highly resilient system that operates largely independent of its public-facing infrastructure,” the firm said.
Darknet marketplace operators Huione Group still thriving
The Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed on May 1 to bar the Huione Group from accessing the American banking system, accusing the company of helping North Korea’s state-sponsored Lazarus Group launder cryptocurrency.
Chainalysis said US banks typically react immediately and sever ties upon announcement to avoid regulatory risk. However, Huione has proven resilient against authorities.
“This de-risking effect means Huione likely lost US dollar access from the day of the notice — yet transactional data suggests minimal operational impact,” Chainalysis said.
“The data shows that not only did transaction volume not drop following the FinCEN announcement, it actually increased,” it added.
A May 30 report from crypto analytics firm TRM Labs said the Huione Group is still operating channels for its VIP vendors and has received at least $81 billion in crypto since 2021, surpassing the $5 billion received by the similar Russian online black market, the Hydra marketplace.
Adding that, Huione is a central conduit for a broad range of cyber-enabled criminal activity, including pig butchering scams, fraud and cyber heists.
Huione’s cryptocurrency exchange platform has also returned to the scene, according to Chainalysis, with the platform retaining its old logo and under a new domain.
The exchange’s social media accounts remain active across different platforms, including its Telegram channels.
Cambodian conglomerate Huione Group is responsible for a network of businesses, which includes payment service platform Huione Pay PLC, the crypto exchange Huione Crypto and Haowang Guarantee.
Law enforcement needs a new approach
Chainalysis said the persistence of the Huione Group and its subsidiaries reflects a broader challenge of addressing sophisticated organized criminal groups that can operate at scale while evading law enforcement.
Related: Elliptic exposes $11B scam network via Huione Guarantee
An “ecosystem-wide response, meaning sustained, multi-vector enforcement strategies,” is required to truly make a dent in illicit companies such as Huion, according to Chainalysis.
“Addressing these networks may require updated enforcement strategies that go beyond surface takedowns and focus on the complex underlying architecture that supports them,” Chainalysis said.
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