Despite alleged closure and regulatory penalties, Huione's cryptocurrency money laundering network continues to flourish: Chainalysis's Findings
Crypto Laundering Giant Huione Relentlessly Operating Post Shutdown Reports
Contrary to rumors of its demise, the notorious Chinese crypto laundering platform Huione is still thriving, with its transaction volumes skyrocketing even after being labeled a primary money laundering concern by FinCEN.
Despite whispers of its downfall and the disappearance of its website and Telegram channels, this sly darknet crypto laundering service, Huione, refuses to be silenced. According to Chainalysis data, Huione's transaction volumes have spiraled even after the May 1st announcement by FinCEN designating it as a primary money laundering concern under the USA PATRIOT Act.
This is FinCEN's second foray into cryptocurrency-related illicit finance, following their targeting of the Bitzlato exchange, utilizing Sections 311 and 9714. Section 311 enables regulators to swiftly isolate bad actors without the need for court approval, but the rule is yet to be finalized. U.S banks typically sever ties immediately upon announcement to dodge regulatory risk. However, this likely cut Huione's U.S dollar access on that day, but the transaction data reveals little to no interruption in its operations.
As reported by Chainalysis, Huione resurfaced under a new domain, Huione.me, still emulating its original branding and active social media presence, complete with robust Telegram channels where user interaction remains robust. The platform continues to list its linked token XOC and stablecoin USDH for trading.
Following its supposed shutdown, none of the other guarantee services could match Huione's scale or transaction volume. While a handful of platforms, such as Tudou Danbao, saw temporary spikes in activity, these increases are minimal compared to Huione's continued operations. This suggests that users have primarily remained within Huione's laundering network rather than migrating elsewhere.
According to Chainalysis, Huione's persistence underscores the constraints of fragmented enforcement. Shutting down networks like this necessitates coordinated, cross-border action and real-time intelligence sharing. Blockchain analytics will be integral to bridging the gaps that traditional methods can't reach.
Insights:- Huione operates in both traditional finance and cryptocurrencies, making it hard for regulators to fully grasp its operations without coordinated intelligence [1].- Despite the shutdown of public-facing infrastructure, Huione's underlying network remains active, demonstrating a highly resilient system that operates largely independently of its public-facing infrastructure [4][5].- Huione leverages stablecoins like USDH, which provides a bridge between illicit crypto activities and traditional finance [1][5].- Huoine employs multiple blockchains and platforms, including Telegram, to continue its operations, even post-ban [5].- Huione's network is supported by connections with other illicit entities like Xinbi, helping it maintain operational capacity despite attempts to shut it down [5].
With its resilience and adaptability, Huione serves as a testament to the sophistication and endurance of modern money laundering networks.
- Still active after being labeled a primary money laundering concern, Huione's transaction volumes have spiraled on the Tron blockchain, indicating the general-news of its persistence in the crypto industry.
- Evading silence despite the disappearance of its website and Telegram channels, Huione has resurfaced under a new domain, Huione.me, and continues to list its linked token XOC and stablecoin USDH for trading on dex platforms.
- The resilience of Huione's network, operating largely independently of its public-facing infrastructure, highlights the necessity of coordinated, cross-border action and real-time intelligence sharing in the crime-and-justice sector to combat such illicit finance activities.
- Huione's money laundering operations bridge the gap between illicit crypto activities and traditional finance, posing a significant challenge to regulators in the finance industry.
- While other guarantee services experienced temporary spikes in activity after Huione's supposed shutdown, none could match Huione's scale or transaction volume, suggesting that users have primarily remained within its laundering network.
