In a report by blockchain security firm SlowMist, HuionePay, a Telegram-based payment platform, has emerged as a focal point in the global fight against illicit cryptocurrency activities.
According to the analysis, conducted using SlowMist’s anti-money laundering (AML) tool MistTrack and public blockchain data, HuionePay processed over $50 billion in USDT deposits and $50 billion in withdrawals on the TRON blockchain from January 1, 2024, to June 23, 2025.
This staggering $100 billion in total fund flows has raised significant concerns, as the platform is suspected of facilitating scams, underground payment networks, and cross-border money laundering.
The report underscores the need for heightened regulatory scrutiny and robust on-chain monitoring to ensure a secure crypto ecosystem.
HuionePay, part of the Cambodia-based Huione Group, has evolved into a highly efficient payment hub, primarily handling USDT transactions on TRON.
SlowMist’s investigation utilized a custom Dune Analytics dashboard to map HuionePay’s on-chain behavior, revealing patterns that suggest its role in illicit finance.
The platform’s transaction volume peaked in March and May 2025, with withdrawals nearing or exceeding 1.1 billion USDT on two occasions.
This past month, HuionePay recorded nearly 150,000 withdrawal transactions in a single day, highlighting an unusually high-frequency pattern.
Deposits, while also significant, showed milder fluctuations, reaching up to 140,000 transactions daily.
The number of active deposit addresses linked to HuionePay grew from under 30,000 in early 2024 to over 80,000 by mid-2025, indicating a sharp rise in user activity.
The report’s findings align with broader concerns about HuionePay’s operations.
In July 2024, Tether froze 29.62 million USDT in a HuionePay address (TNVaKW) after it received funds linked to thefts from exchanges like DMM and Poloniex.
This freeze, representing 75% of HuionePay’s reserves at the time, caused significant withdrawal pressure and prompted the platform to issue a notice distancing itself from transactions involving serious crimes, such as cryptocurrency theft and money laundering.
Despite this, HuionePay’s lax Know Your Customer (KYC) and Know Your Transaction (KYT) protocols have made it a magnet for illicit activities, including fraud and black-market transactions.
Bitrace, another blockchain analytics firm, reported that from June 2022 to June 2024, HuionePay and HuioneGuarantee addresses handled 102.397 billion USDT, with high-risk funds comprising a notable portion, including 15.71% from black-market transactions and 2.5% from money laundering.
The launch of Huione Group’s USDH stablecoin in September 2024 further complicates the picture.
Promoted as a way to avoid freezes and regulatory restrictions, USDH operates on Huione’s proprietary Xone chain, as well as Ethereum, BSC, and TRON.
This move suggests an attempt to reduce reliance on USDT, which is subject to Tether’s centralized controls, such as asset freezing.
Critics argue that USDH’s design, which emphasizes a lack of regulatory oversight, could further enable illicit activities, especially given HuionePay’s history.
The platform’s Telegram-based marketplace, HuioneGuarantee, has been linked to cyber scams, including “pig butchering” frauds, and has reportedly processed $24 billion in transactions, making it one of the largest illicit online marketplaces.
SlowMist’s analysis emphasizes the importance of on-chain monitoring tools like MistTrack, which provide critical insights into transaction patterns and risky addresses.
The firm urges exchanges, enterprises, and regulators to leverage such tools to enhance AML compliance and mitigate risks.
The report also highlights the broader crypto security landscape, noting that in 2024, blockchain hacks led to $2.013 billion in losses, with only 8.25% recovered.
High-profile incidents, such as the Bybit hack in February 2025, which saw $1.46 billion stolen, underscore the persistent threat of sophisticated cyberattacks, often linked to groups like North Korea’s Lazarus Group.
As regulatory pressure mounts, HuionePay’s case serves as a reminder of the challenges facing the crypto industry.
While blockchain technology offers transparency, it also provides cover for illicit actors when oversight is weak.
SlowMist’s call for collaboration among stakeholders to build a more compliant ecosystem is timely, as platforms like HuionePay test the boundaries of financial innovation and regulatory enforcement.