World’s Largest Crypto Crime Network Collapses After Telegram Crackdown

One of the world’s largest illicit crypto marketplace, Haowang Guarantee, has ceased operations following a major enforcement action by Telegram. The announcement came after the messaging platform blocked Haowang’s NFTs, groups, and thousands of related channels on May 13, effectively dismantling its infrastructure.

Haowang, which primarily operated via Telegram, facilitated a wide array of illegal services including money laundering, personal data trafficking, and technology tools for online crime, according to blockchain analytics firm Elliptic.

Links to Huione Group and Broader Investigations

Elliptic, which had previously flagged Haowang’s operations, confirmed in its updated report that the marketplace had processed more than $27 billion in transactions, mainly through the USDT stablecoin, making it the largest known illegal crypto market to date.

Telegram’s action was a response to mounting scrutiny from blockchain analysts and law enforcement officials, who have increasingly focused on curbing crypto-enabled crime via messaging platforms. The platform’s ties to Southeast Asian cybercriminal networks, particularly involving crypto scammers, positioned it as a central player in the region’s illicit financial flows.

Meanwhile, although Haowang rebranded from its previous identity as Huione Guarantee, US authorities continue to associate it with the Cambodian-based Huione Group. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) recently proposed sanctions against Huione, accusing it of orchestrating a “money laundering enterprise” through its network of businesses.

These include Haowang, payments processor Huione Pay, and crypto exchange Huione Crypto. According to FinCEN, the group allegedly laundered over $4 billion in illicit funds, some of which were traced to North Korean cybercrime operations.

A key component in the illicit transaction flow was USDH, a stablecoin issued by the Huione Group. Elliptic’s report notes that this stablecoin played a crucial role in evading sanctions and enabling high-volume transfers that were difficult to trace through traditional regulatory channels.

Notably, the use of stablecoins in laundering operations has drawn renewed attention from international regulators as they seek to impose tighter controls on digital asset transactions. In the case of Haowang, USDH served as a primary medium of exchange, facilitating services from fraudulent finance operations to personal data sales.

Further Disruption and Ongoing Surveillance

Telegram’s action also extended to other similar platforms, including Xinbi Guarantee, another marketplace allegedly offering illegal services such as money laundering, intimidation, and even human trafficking.

The shutdown of Xinbi and Haowang has “severely disrupted” what Elliptic describes as the two largest illicit marketplaces hosted on Telegram, both of which have processed a combined total of over $35 billion in USDT transactions.

Despite these setbacks, analysts at Elliptic noted that Haowang and Xinbi are reportedly attempting to rebuild their networks, with efforts to re-establish their presence on Telegram already underway.

Elliptic continues to monitor over 30 additional platforms that mirror Haowang’s operational model. As law enforcement agencies and private firms tighten their surveillance on crypto-based crime networks, the collapse of Haowang marks a critical development in the broader effort to contain financial misconduct in the digital asset space.

The case also reinforces the growing role of platforms like Telegram in enabling or curbing the use of crypto for illicit activity, as international regulators push for greater accountability in the financial ecosystem.

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