Comprehensive Analysis of a Major Crypto Marketplace Shutdown
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Haowang Guarantee: A Major Crypto Marketplace Faces Shutdown
In a landmark move, the notorious illicit crypto marketplace, Haowang Guarantee, has been forced to shut down following decisive actions by Telegram. The messaging giant announced its decision on May 13, effectively dismantling Haowang’s operations by blocking its NFTs, groups, and countless associated channels. This enforcement action is a significant blow to the marketplace, which, according to blockchain analytics firm Elliptic, was deeply involved in various illegal activities, including money laundering, personal data trafficking, and supplying technology tools for cybercrime.
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Connections to the Huione Group and Wider Investigations
Elliptic’s extensive research has previously highlighted Haowang’s operations, revealing that the marketplace had facilitated transactions exceeding $27 billion, primarily using the USDT stablecoin. This makes it the largest known illegal crypto marketplace to date. Telegram’s swift action comes in response to heightened scrutiny from blockchain analysts and law enforcement agencies aiming to combat crypto-fueled crime conducted via messaging platforms. Haowang’s connections to Southeast Asian cybercriminal networks, particularly those involving crypto scammers, underscore its pivotal role in the region’s illicit financial activities.
Even after rebranding from its former identity, Huione Guarantee, Haowang remains linked to the Cambodia-based Huione Group according to U.S. authorities. The Financial Crimes Enforcement Network (FinCEN) of the Treasury Department has proposed sanctions against Huione, accusing it of masterminding a “money laundering enterprise” through its expansive network of businesses. This network includes Haowang, the payments processor Huione Pay, and the crypto exchange Huione Crypto, allegedly laundering over $4 billion in illicit funds with connections to North Korean cybercrime operations.
The USDH stablecoin, issued by the Huione Group, was instrumental in facilitating illicit transactions, allowing for high-volume transfers that evaded traditional regulatory scrutiny. The increasing use of stablecoins in laundering operations has caught the attention of international regulators, prompting calls for stricter controls on digital asset transactions. In Haowang’s case, USDH was a key medium for illegal financial activities, ranging from fraudulent financial operations to the sale of personal data.
Additional Disruptions and Continuous Monitoring
Telegram’s enforcement measures also impacted other similar platforms, most notably Xinbi Guarantee, another marketplace accused of offering illegal services such as money laundering, intimidation, and even human trafficking. The shutdown of both Xinbi and Haowang has significantly disrupted what Elliptic describes as the largest illicit marketplaces operating on Telegram, which have collectively processed transactions worth over $35 billion in USDT.
Despite these setbacks, Elliptic reports indicate that Haowang and Xinbi are actively seeking to rebuild their networks and re-establish their presence on Telegram. The firm continues to monitor over 30 additional platforms that mimic Haowang’s operational model, as law enforcement agencies and private companies intensify their surveillance of crypto-based crime networks. The downfall of Haowang represents a pivotal development in the ongoing fight to clamp down on financial misconduct within the digital asset sector.
This case underscores the significant role of platforms like Telegram in either facilitating or curbing the use of cryptocurrencies for illegal activities, as international regulators push for greater transparency and accountability within the financial ecosystem.
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