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Telegram Closes Major Crypto Black Market: Haowang Guarantee
On May 13, Telegram took decisive action by shutting down Haowang Guarantee, previously known as Huione Guarantee, marking the end of what analysts label the largest crypto-supported black market to date. This operation was reportedly involved in laundering over US$27 billion (approximately AU$42 billion) through Asia’s digital scam ecosystem.
Haowang operated exclusively via Telegram, where it coordinated its entire network of vendor accounts, service groups, and customer communication. It was a critical hub for payments and interactions, relying on the messaging platform for functioning. The closure comes at a time when its parent company, Huione Group, is under investigation for allegedly facilitating US$98 billion (AU$153 billion) in questionable cryptocurrency transactions, including those associated with North Korean cybercriminal activities.
Internal Investigations and Consequences
Telegram confirmed the shutdown in response to findings from independent investigations, including a notable report from blockchain analysis firm Elliptic. Following the recent enforcement action, the Haowang website displayed a message indicating that operations would cease due to the blocking of all its channels and groups on Telegram.
Haowang’s Historical Context
The controversial Huione Group was noted for its extensive financial operations, with U.S. Treasury officials alleging the processing of more than US$4 billion (AU$6.25 billion) in illicit funds, comprising US$37 million (AU$57 million) linked to cybercrimes from North Korea and US$300 million (AU$468 million) from scams targeting the U.S. population. Earlier this year, the Huione Guarantee app was removed from Google Play, and Cambodia’s central bank revoked the license of its payment platform, Huione Pay.
Emergence of New Networks
Despite the clampdown on Haowang, the cryptocurrency laundering ecosystem appears resilient, with new entities like Xinbi Guarantee quickly surfacing. Research from Elliptic reveals that Xinbi has attracted over 233,000 users and has processed at least US$8.4 billion (AU$13.12 billion) in dubious transactions. Some vendors on Xinbi are openly offering laundering services for proceeds from scams, including ‘pig butchering’ fraud schemes. Additionally, links have been found connecting Xinbi to the infamous US$235 million (AU$367 million) WazirX hack, attributed to North Korea’s Lazarus Group, indicating a high level of sophistication and integration within these networks.
While Telegram has not yet enforced actions against Xinbi, despite its significant size, researchers have identified numerous Xinbi wallet addresses related to vendor activities. There are also connections with a US-registered firm, Xinbi Co. Ltd, which, since its incorporation in Colorado in 2022, has been marked as “Delinquent” for failing to meet regulatory obligations.
Moreover, Tudou Guarantee has emerged as another potential fallback operation for the operators of Haowang, further indicating that the ecosystem continues to regenerate and adapt swiftly.
Conclusion
The closure of Haowang Guarantee highlights both the challenges and the dynamism of efforts to combat illicit activities within the cryptocurrency realm. Even as platforms and networks are dismantled, the ability for new operations to establish themselves remains a significant concern for cybersecurity officials and financial regulators alike. The resilience of these laundering operations poses a continual threat, necessitating ongoing vigilance and responsive measures from authorities on a global scale.
