Tether Freezes $28M USD Linked to Cambodian Fraud: Investigation Update

This wallet is allegedly linked to the Cambodian-based Huione Group, a revelation made by the blockchain security firm Bitrace in a July 14 post. The frozen wallet, activated on July 9, is connected to Huione’s Guarantee business operations, according to Bitrace’s analysis.

Notably, Huione attempted to evade the freeze by activating a new address, TQuFSv, and transferring $114,800 in USDC from the blacklisted TNVaKW wallet. However, despite Tether’s swift action, Bitrace’s findings suggest that Huione’s other business addresses, including its old business address TL8TBp, remain operational.

• Crypto Scams Linked to Huione Guarantee: A Warning

Crypto Scams Linked to Huione Guarantee: A Warning

According to Elliptic’s report, Huione Guarantee has emerged as a significant hub for scam operations in Southeast Asia, with criminal transactions linked to the platform totaling at least $11 billion. Operating primarily as a deposit and escrow service for peer-to-peer transactions on Telegram, the Cambodia-based company utilizes Tether’s USDT stablecoin, making it a favored platform for scammers and money launderers alike.

Furthermore, the blockchain analysis firm alleges that Huione Guarantee is connected to Cambodia’s ruling family, including Prime Minister Hun Manet, adding another layer of complexity to the already troubling situation. This connection suggests that political influence may be at play in facilitating such fraudulent activities, further eroding trust in the cryptocurrency ecosystem.

In response to this report, law enforcement agencies and blockchain analysts have begun working to disrupt Huione Guarantee’s operations. By tracking crypto transactions and identifying wallets linked to the platform, they aim to bring an end to the fraudulent activities and protect investors from further harm. The Tether freeze, a recent example of such efforts, demonstrates the ongoing commitment to clamping down on crypto-related fraud and financial crimes.