Apple and Google have decided to remove apps developed by Huione Group from their marketplaces following allegations of their involvement in illicit activities. The removal from the app stores of these major tech giants ramps up Huione Group’s mounting problems.
In July 2024, Elliptic, a crypto crime sleuth, exposed Huione Guarantee as a multi-billion dollar marketplace for online fraudsters, including those behind the so-called pig butchering scams.
An updated analysis by Elliptic shows that cryptocurrency wallets used by Huione Guarantee and its vendors have received at least $24 billion. Since the publication of their research in July, the marketplace’s monthly inflows have surged by 51%, and the number of users has soared to more than 900,000.
The reaction to the app store removals
The recent removal of Huione Group apps from the Apple and Google App Stores has various implications. For starters, people have highlighted the difficulties these app stores have to endure in monitoring and preventing the distribution of apps linked to illegal activities.
Even though the apps are no longer in the app stores, Huione Guarantee also operates via apps like Telegram, a platform that has also faced legal issues regarding its efforts (or lack thereof) in fighting illicit activities.
The removal also raises questions about the legal responsibilities app stores have to regulate content and ensure user safety without overstepping regulatory boundaries. Meta’s Mark Zuckerberg raised a similar question on the JRE podcast earlier in the week.
Users on X (formerly Twitter) have also asked whether either tech giant would have taken action if Elliptic had not raised the alarm.
Apple and Google have removed apps from the store in the past
Apple and Google may decide to remove an app from their marketplaces for different reasons. In Huione Guarantee’s case, it was because the app was outed as a platform that supports scams.
Other reasons include failing to update regularly, privacy concerns, and issues with regulatory compliance, which differ from country to country.
This year, Apple and Google removed several VPN apps, including Cloudflare’s 1.1.1.1, for not complying with India’s data laws. They also removed Zynn after the app was accused of plagiarism and copying user data from TikTok without permission.
Vaping apps burst onto the scene around 2019, but Apple quickly ramped up action against them, removing 181 vaping-related apps due to health concerns.
Many COVID-19 apps have also been removed for spreading misinformation about COVID-19 to prevent public harm.
Huione Guarantee exposed for supporting fraudulent practices
Following the revelation, Huione Guarantee has attempted to distance itself from Huione Group. The marketplace recently renamed itself to “Haowang Guarantee.” Huione Group’s payments business, Huione Pay, also removed a section that describes Huione Guarantee as a subsidiary from its website.
Despite all these, Huione Guarantee has confirmed that Huione Group remains a “strategic partner and shareholder.” All the increased attention also seems to be beneficial to the platform as the goods and services remain mostly unchanged, and business is as good as ever.
The platform also now offers a range of services, including a payment app, crypto exchange, and a messaging service, which may have been used to support fraudulent activities.
It even launched its own US dollar-backed stablecoin, USDH. Its website describes USDH as a stablecoin that “avoids the common freezing and transfer restrictions of traditional digital currencies.” It also mentions that “USDH is not restricted by traditional regulatory agencies.”
Other stablecoins, like Tether’s USDT, have built-in functionality that allows the token’s issuer to “freeze” accounts, for instance, if they have engaged in illicit activity. USDH makes this impossible because it lacks the functionality.
Huione Guarantee currently uses USDT extensively as a payment mechanism. However, observers believe the launch of USDH may be partially motivated by a desire to become less vulnerable to asset freezes.
Huione Group has also launched its crypto wallet software and decentralized exchange (DEX), allowing USDH to be swapped for other crypto assets.
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