Key Takeaways:
- Telegram banned Haowang Guarantee, a darknet marketplace facilitating $27B in crypto scams.
- The platform offered money laundering, deepfake tools, and even human trafficking services.
- Similar markets like Xinbi Guarantee ($8.4B in deals) are attempting to relaunch on Telegram.
- U.S. Treasury blacklisted Haowang’s parent company, Huione Group, for money laundering ties.
The Fall of a Crypto Crime Giant
Telegram has dealt a devastating blow to the darknet economy, taking down Haowang Guarantee – a $27 billion black market that existed in plain sight on the platform for years. The Chinese-language marketplace, originally named Huione Guarantee, was a hub for crypto money laundering, scam infrastructure, and even human exploitation tools, according to blockchain analytics firm Elliptic.
How Haowang Operated: A Scammer’s Paradise
Acting as an eBay for cybercriminals, Haowang connected vendors offering:
- Money laundering via Tether (USDT)
- Victim databases for phishing campaigns
- Deepfake software and spoofed telecom services
- GPS shock collars used in Cambodian scam compounds
Transactions were “guaranteed” through Telegram-based escrow systems, with vendors paying fees in crypto. At its peak, the market processed $11 billion annually – more than Silk Road ever did.
The Crackdown: Why Now?
The elimination of Telegram closely followed a WIRED investigation citing research from Elliptic. Telegram banned thousands of accounts tied to Haowang and Xinbi Guarantee (another $8.4B market) in 24 hours. The timing coincides with the U.S. Treasury’s blacklisting of Huione Group, Haowang’s Cambodia-based parent company tied to the family of Prime Minister Hun Manet.
This was the world’s biggest black market on the internet; this is a paradigm shift. But like the Hydra, severing one head may just spawn others.
The Whack-a-Mole Problem
Despite the victory, copycats are already adapting:
- Xinbi Guarantee is migrating to new Telegram channels
- Tudou Guarantee (part-owned by Haowang’s operators) saw an important user spike post-crackdown
- Criminals may shift to decentralized platforms like Session or Matrix
Broader Implications for Crypto
The takedown highlights:
✅ Progress: Coordinated action between researchers, media, and platforms works
⚠️ Challenges: Telegram’s encryption still enables illicit activity
💡 Opportunity: Blockchain analytics tools are becoming essential for compliance
Summing Up
Although Haowang’s death cuts off scam cashouts, experts caution us that it’s unrealistic to believe the $75 billion/year crypto crime industry will cease to function anytime soon. While Telegram is examining how they can do better when it comes to long-term monitoring, they will be under pressure to enforce compliance, as will Tether to freeze more illicit transactions.
Will this be a tipping point in our war against crypto crime, or simply drive the crime further underground? With alternatives utilizing decentralized systems emerging into the market, the fight is far from over.
