The Cambodian government has publicly declared its intention to combat the rampant surge in crypto romance scams and shut down the compounds responsible for these fraudulent activities. However, recent evidence suggests that the prime minister’s own family may be implicated in these crypto-connected scams.
According to a DL News investigation and a report from blockchain analytics firm Elliptic, an online marketplace called Huione Guarantee, which is linked to Prime Minister Hun Manet’s cousin, Hun To, is widely used by scam operators in Southeast Asia. Elliptic’s analysis revealed that crypto wallets associated with Huione Guarantee and its merchants have received more than $11 billion since 2021.
The investigation found that the Huione Guarantee site features merchants openly offering money laundering services and tools for creating scams, known as “pig butchering” schemes, which target users seeking romantic relationships.
Prime Minister’s Family Involvement
Hun To, who is a director in one of the units of the Cambodian conglomerate Huione Group, has been linked to crypto fraud activities. While not all transactions can be traced to illegal activities, Elliptic’s report provides strong indications that the majority are illicit.
Elliptic stated, “Many of the merchants explicitly offer money laundering services, including accepting payments from victims around the world, transferring it across borders, and converting it to other assets including cash, stablecoins, and Chinese payment apps.”
Industrial-Scale Fraud
This development highlights the industrial-scale proportions of crypto-fueled fraud in Southeast Asia. Earlier this year, the United Nations Office on Drugs and Crime reported that more than $17 billion in USDT was connected to underground crypto exchanges and criminal activities.
The Role of Huione Guarantee
Huione Guarantee operates as a clearing house for numerous instant messaging app channels, each managed by different merchants. The platform claims to prevent fraud by acting as a guarantor for all transactions, accepting payments primarily in USDT, but also via payment apps and bank transfers.
Despite the Cambodian government’s stated efforts to combat crypto scams, the involvement of high-profile figures within the ruling family complicates these efforts and raises significant concerns about the effectiveness and sincerity of these initiatives.
For more detailed insights, read the full article on DL News here.
