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Jimmy Aki
Author
Jimmy Aki
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Key Takeaways:
- Telegram’s encryption allowed Haowang to process $27 billion in illicit USDT trades.
- Huione Group’s sanction-evading stablecoin (USDH) laundered $4 billion for criminal networks.
- Over 30 similar Telegram marketplaces remain active despite crackdowns.
On May 13, Haowang Guarantee, a Telegram-based platform dubbed the world’s largest illicit online marketplace by Elliptic, halted operations. The shutdown came after Telegram blocked thousands of accounts and channels tied to the group.
Blockchain analytics firm Elliptic revealed that the platform processed over $27 billion in USDT transactions. These funds supported criminal activity, including money laundering, hacking tool sales, and personal data trafficking for Southeast Asian crypto fraud rings.
Telegram’s Encryption: A Double-Edged Sword for Crime and Privacy
Elliptic’s investigation forced Haowang’s shutdown after exposing its criminal network, including ties to Cambodia’s Huione Group.
The platform operated as a full-service laundering hub for scam profits and trafficking proceeds, using Telegram’s encrypted channels to avoid detection. Huione Group issued USDH, a stablecoin created specifically to bypass sanctions and wash at least $4 billion in illegal funds.
According to the U.S. Treasury’s FinCEN, part of these laundered funds have been linked to the North Korean cyberheist organization Lazarus Group. Simultaneously, Telegram targeted Xinbi Guarantee after the release of Elliptic’s report.
Haowang and Xinbi processed over $35 billion in USDT before their closures.
Despite the crackdown, Elliptic co-founder Tom Robinson reports that Haowang and Xinbi are trying to rebuild their presence on Telegram. Elliptic also warned that more than 30 similar Telegram-based marketplaces remain active.
The closures mark a rare enforcement win against crypto-based illicit finance, though challenges persist as operators and crime organizations adapt.
On May 1, FinCEN proposed suspending Huione Group’s access to the U.S. financial system, accusing the company of running a sprawling money laundering network.
Haowang had rebranded from Huione Guarantee but maintained ties to Huione Group, demonstrating the conglomerate’s central role in supporting Southeast Asia’s crypto crime ecosystem.
From Cyberheists to Kidnappings: The Violent Side of Crypto Crime
In 2024, illicit cryptocurrency transactions surged to at least $40.9 billion, according to Chainalysis, with the figure expected to rise as more illicit addresses are identified.
Stolen funds from hacks increased by 21% year-over-year to $2.2 billion, with North Korean hackers responsible for $1.34 billion, over 60% of the total.
These cybercriminals, namely the Lazarus Group and Tradetraitor, executed high-profile attacks, including the theft of 4,502.9 Bitcoin from Japan’s DMM Bitcoin exchange in 2024.
Other criminal activities, such as high-yield investment frauds and “pig butchering”—a long-game romance/investment scam—continue to thrive, now enhanced by the use of AI for more convincing attacks.
The stolen assets are often laundered through illegal marketplace platforms like Huione Guarantee.
Criminal networks increasingly use cryptocurrency to facilitate traditional crimes, ranging from drug trafficking to intellectual property theft and even violent kidnappings.
For example, on May 13, 2025, the daughter and grandson of the CEO and co-founder of Paymium, a French cryptocurrency exchange, were attacked in broad daylight in Paris.
As three masked men attempted to kidnap them, the victims resisted, and bystanders intervened, including a shopkeeper who used a fire extinguisher to drive off the attackers.
Authorities claim that the emergence of large organized illicit organizations (and laundering services) has allowed the processing of billions in criminal transactions for various criminal activities.
Can Law Enforcement Keep Up with Crackdown on Crypto Crime?
FBI agents intercepted 5,400 crypto scams, recovered $285 million, and saved lives, stopping 42 suicides tied to financial ruin in 2025. But these wins felt small against the tsunami of dirty money flooding the crypto world. For every bust, criminals adapted faster.
They slipped through Telegram’s encrypted channels, vanished into offshore exchanges, and the game kept changing.
Across the globe, law enforcement scored fleeting victories. Thai authorities dismantled a $620,000 fraud network spanning Cambodia and Myanmar, arresting key figures who laundered funds through Bangkok real estate.
In Nigeria, law enforcement arrested over 700 suspects, including 188 foreigners, in a cross-border crypto romance scam. Meanwhile, North Korean hackers stole $1.3 billion, and Haowang laundered $27 billion. As enforcement scored a point, crime kept winning the game.
Even as each bust made headlines, the system seems outmatched. The scams keep evolving, and the criminals continue to demonstrate frightening adaptability.
Frequently Asked Questions (FAQs)
Criminals exploit Telegram’s loose controls by cloning channels and scattering operations to evade bans. Cryptocurrency helps them move money freely. Mixers, privacy coins, and anonymous wallets muddy the trail, which results in law enforcement struggling to track or seize these hidden funds.
Special tools analyze blockchain transactions, linking addresses to known services like exchanges or mixers. Suspicious activity—such as rapid, large transfers to offshore platforms—gets flagged. For example, Elliptic’s research exposed Huione wallets funding USDH scams. AI adapts to new tricks like chain-hopping and cross-chain swaps, staying ahead of thieves.
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