$27B Telegram-based black market for crypto crime Haowang Guarantee shut down

Haowang Guarantee, a massive crypto-powered black market that moved over $27 billion in illicit funds, has been shut down following a Telegram crackdown triggered by new investigative findings. As originally reported by WIRED, Haowang Guarantee, the internet’s largest crypto-fueled black market, has been abruptly shut down in a massive account purge by Telegram. The shutdown was announced in a short statement posted on Haowang’s website, citing that their “NFT, Channels and group” were blocked by the messaging platform on May 13. The takedown appears to have been triggered by WIRED’s inquiry into Haowang, prompted by new findings from blockchain analytics firm Elliptic, which also flagged a smaller, similar marketplace called Xinbi. In response, Telegram swiftly banned thousands of accounts that formed the backbone of both Haowang’s and Xinbi’s operations. “Communities previously reported to us by WIRED or included in reports published by Elliptic have all been taken down,” Telegram spokesperson Remi Vaughn confirmed. “Criminal activities like scamming or money laundering are forbidden by Telegram’s terms of service and are always removed whenever discovered.” Formerly known as Huione Guarantee, Haowang was a Chinese-language black market that facilitated a sprawling network of third-party vendors who sold services to crypto scammers, including money laundering via Tether (USDT), stolen data, deepfake software, and even equipment used in scam compounds across Southeast Asia. Vendors operated through Telegram using an escrow system that “guaranteed” transactions. The market processed over $27 billion in illicit transactions, according to Elliptic, dwarfing all previous dark-net marketplaces in scale. Tom Robinson, cofounder of Elliptic, called the takedown “a game changer,” stating: “This is a huge win. The largest dark-net marketplace to have ever existed has been shut down. It’s a big blow to the criminal ecosystem that will take a long time to recover from.” While Haowang shuttered almost immediately, Telegram account activity indicates that its operators may be attempting to shift users to another similar platform called Tudou Guarantee. Elliptic reports that Haowang’s administrators have ties to Tudou, and Telegram activity shows a surge in new users joining Tudou channels following the takedown of Haowang and Xinbi. Whether they succeed in relaunching will depend on how aggressively Telegram continues to monitor and dismantle such operations. Apart from Elliptic’s findings, Telegram’s action may have also been influenced by a recent move from the U.S. Treasury’s Financial Crimes Enforcement Network, which announced earlier this month that it would designate Huione Group—parent company of Huione Guarantee/Haowang Guarantee—as a known money laundering operation, aiming to cut off its access to US financial institutions. Although Telegram’s action dealt a major blow to Haowang’s Telegram infrastructure, it’s unlikely to eliminate the threat entirely. Haowang’s parent company Huione Group has ties to political elites in the region, including links to the family of Cambodian Prime Minister Hun Manet. The group’s influence and resources could aid efforts to rebuild the illicit operation elsewhere, potentially on less regulated platforms or decentralized networks. “This isn’t the end,” said Robinson. “Online crime is a cat-and-mouse game in general. But these are very large mice.” Source: https://crypto.news/27b-telegram-based-black-market-for-crypto-crime-haowang-guarantee-shut-down/