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Huione Group, Cambodian company that is allegedly behind the Magic illegal markets faces allegations that the BlockChain security company has been called for the production of affordable audit for its newly launched stems, stellars.
In a post On X, the Certik co-founder Ronghui Gu claims that the company with a smart agreement contacted the Third Party Agency, which blinded them to connect the project with an illegal market.
Certik claims to be seduced in the audit coal
Huione Group was exposed be behind the guarantee of the Huione Telegram Marketplace, which facilitates transactions for cybercrime in Southeast Asia; The platform allegedly re-processed over $ 24 billion in transactions.
2024. year, he allegedly launched Starry stableCoin, which will be received to the US dollar and is stated as a Censor resistant to users to avoid freezing transaction that usually connects to popular stable people like USDT. This is placed concerns that a coin is a tool for helping money laundering.
After starting the coal, Huione Group agreed with a certific, a prominent blockchain security company, to perform a smart audit of the StableCoin contract.
The audit 12 security issues identified: three main, two medium, three small and four informative issues. The main issues were about centralization of coins. The audit report showed that six of these issues were resolved, one partially resolved, and five only admitted.
The coin received a certific of a security result less than 30%, but came into audit as a sign of legitimacy regardless of.
However, there are allegations that Huione Group could have incorrect or concealed critical information from the audit team during the audit in order to obtain a favorable assessment.
The Certik co-founder Ronghui Gu said that the third party contacted the audit certific, which prevented them from rapidly connecting the project to false activities. Although the Certik assessed the safety and functionality of the code and does not perform business or business audits, “we agree that more deeper Diligence and additional warnings would help,” admitting that the company could make a better job to protect the public interest.
The Huione guarantee tried to distinguish from Huion Group, creding credibility to state that the organization cheated on the certificate to give him favorable audit.
In July 2024. year, the BlockChain Analytics company Elliptic published a research report, which presented the group as behind the illegal market. After the publication of this publication, the Huion guarantee has been rebranded as a guarantee of Haowang, business for the Payments of the Huion Group, Huione Pay has also removed the section on its website dedicated to the market. However, the Huione Group remains a “strategic partner and shareholder”, according to market statements.
Certik’s reputation occupies a hit
This case points out the challenges on Blockchain and Crypto markets regarding the audit of the project. Although the contractual revisions of the contract assess technical vulnerability, they do not assess the business or regulatory respects of the entities behind the projects, which enable bad actors to use audit reports as a seal of legitimacy.
Vocal chain sleuth, @tayvano_on x (earlier Twitter) also alluded to this UA postSaying “Contemporary money laundering operation for multi-billion dollars paid a certific of the stamp approval of their new money laundering.”
Another commenting on certiK’s revision in the amount of certiK issues in the need for a more comprehensive evaluation framework that includes technical assessments and the required verification on the entities behind BlockChain projects. Smoking could affect the reputation reputation negatively, and the critics say that he consciously took money to approve criminals.
