Huione Group, a Cambodia-based company, is reportedly behind the largest illegal market. This faces allegations that it misinterpreted blockchain security company Certik to create a lucrative audit of the newly launched Stablecoin, USDH.
in post In X, Certik co-founder Ronghui Gu claims that the smart contract auditing company has been contacted by a third-party agent.
Certik claims it is misunderstood by USDH audits
That’s what Huione Group was like Exposure Behind the Huione Guaranteed Telegram Marketplace, which promotes cybercrime trade in Southeast Asia. The platform reportedly handled more than $24 billion in transactions.
In 2024, reportedly USDH Stablecoins are pinned in US dollars and are sold as censorship resistances that help users avoid transaction freezes associated with the commonly popular Stablecoins. USDT. This raises concerns that coins are a tool to help with money laundering.
After the launch of USDH, Huione Group signed up with Certik, a well-known blockchain security company, to conduct a smart contract audit for Stablecoin.
audit 12 identified security issues: 3 major, 2 media, 3 minor, and 4 information issues. The main issue was around the centralization of coins. The audit report showed that six of these issues were resolved, one partially resolved, and five were recognized.
Coin received a Certik security score of less than 30%, but was run in an audit as a mark of legitimacy regardless.
However, there are allegations that Huione Group may have misrepresented or concealed important information from the audit team during the audit in order to receive a favorable evaluation.
Certik co-founder Ronghui Gu said that a third party contacted Certik for an audit, making it impossible to quickly link the project with fraudulent activities. While highlighting that Certik evaluates the security and functionality of the code and does not run KYC or business audits, he added, “I agree that deeper due diligence and extra alerts will be helpful.” Public interest.
Huione’s guarantee lends credibility to allegations that the organization tried to distance itself from the Huione group and tricked Certik into offering a lucrative audit.
In July 2024, Blockchain Analytics company Elliptic released its research report. Following the release of this publication, Huione Guarantee has been rebranded as Haowang Guarantee, and Huione Pay, the payment business of Huione Group, has also removed sections of its market-specific websites. However, Huione Group remains a “strategic partner and shareholder” according to a statement from the market.
Certik’s reputation is hit
This case highlights the challenges of the blockchain and crypto markets with regard to project auditing. Although smart contract audits assess technical vulnerabilities, they do not assess the business operations or regulatory compliance of the entities behind the project, so bad actors can use audit reports as signs of legitimacy.
Vocal-on-chain-through, @tayvano_on x (formerly Twitter) also hints at this post“literally billions of dollars of money laundering work paid certik to print approvals for a new money laundering agreement.”
Others commenting on USDH’s Certik’s audit have raised questions about the need for a more comprehensive assessment framework, including technical assessment and due diligence of the entities behind the blockchain project. Blowback says it could have a negative impact on Certik’s reputation, and critics say he deliberately spent money to support the criminals.
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