On-chain Monitoring Firm Phalcon Uncovers $1.6B TRON Ponzi Disguised as Hong Kong Tech

BlockSec Phalcon, an on-chain analysis firm, uncovered a complex Ponzi scheme operating under the name VerilyHK, a purported health-tech company in Hong Kong. The platform tricked victims by imitating real health technology branding while routing funds through complex layers on the TRON blockchain.

Recent findings show about $1.6 billion in total TRON USDT transactions over 16 months, from October 2024 to February 2026. The analysis reveals a well-organized system designed to conceal the flow of money from deposits to centralized exchanges.

Multi-Layered Laundering Machine Exposed

BlockSec Phalcon researchers used the MetaSleuth tool to track funds from victim deposits to cash-out points. The team identified eight generations of active wallets, comprising at least 15 addresses that changed hands daily among different groups. 

Notably, over 65% of deposit addresses were reused, indicating a coordinated effort throughout the entire period. The funds then passed through 79 addresses with low balances before becoming heavily concentrated at payout hubs. One hub alone processed $240 million, receiving money from 75% of the intermediate addresses. 

The entire process followed a clear four-stage funnel that directed the money toward two payout channels. Ultimately, all flows reached a major centralized exchange hot wallet, which served as the primary exit point. The careful timing and layered design of the scheme allowed it to manage increasing volumes, particularly in the later stages.

TRON Pyramid Scam Traced to Huione

The discovery revealed that a central hub of at least four linked hot wallets linked to the Huione Group transferred $4.6 million in multiple transactions. It also sent smaller amounts directly to Huione Group deposit addresses, including $4,200 and $1.5 million. 

In April 2025, the Heshan District government issued a warning about the project, noting clear signs of a pyramid scheme linked to overseas crypto transactions. Several anti-fraud platforms later cautioned about a potential collapse by late April 2025, leading to the project’s shutdown in February 2026.

The case has become one of the largest documented schemes using the TRON blockchain, identified through on-chain analysis. The VerilyHK operation surpassed previous crypto scams, such as Forsage, which raised $300 million, and NovaTech, which raised $650 million.

Experts warn that similar layered schemes may continue to emerge on low-fee chains, which operators prefer for their efficiency and anonymity. These findings illustrate how in-depth analysis, beyond simple transaction tracking, can reveal hidden patterns in blockchain fund movements.

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