Haowang Guarantee Shut Down After Processing $27 Billion in Illicit USDT Transactions

Coin WorldThursday, May 15, 2025 2:13 pm ET
2min read

On May 13, the Telegram-based platform Haowang Guarantee, identified as the world’s largest illicit online marketplace, ceased operations following the blocking of thousands of accounts and channels linked to the group by Telegram. This shutdown was prompted by an investigation by blockchain analytics firm Elliptic, which revealed that Haowang had processed over $27 billion in USDT transactions. These funds were used to support various criminal activities, including money laundering, the sale of hacking tools, and the trafficking of personal data for Southeast Asian crypto fraud rings.

Haowang operated as a full-service laundering hub for scam profits and trafficking proceeds, utilizing Telegram’s encrypted channels to evade detection. The platform was connected to Cambodia’s Huione Group, which issued USDH, a stablecoin designed to bypass sanctions and launder at least $4 billion in illegal funds. According to the U.S. Treasury’s FinCEN, some of these laundered funds were linked to the North Korean cyberheist organization Lazarus Group. Following the release of Elliptic’s report, Telegram also targeted Xinbi Guarantee, another illicit platform. Together, Haowang and Xinbi processed over $35 billion in USDT before their closures.

Despite the crackdown, Elliptic co-founder Tom Robinson reported that Haowang and Xinbi are attempting to rebuild their presence on Telegram. Elliptic also warned that more than 30 similar Telegram-based marketplaces remain active. The closures represent a rare enforcement victory against crypto-based illicit finance, but challenges persist as operators and criminal organizations adapt to new measures.

On May 1, FinCEN proposed suspending Huione Group’s access to the U.S. financial system, accusing the company of operating a sprawling money laundering network. Haowang had rebranded from Huione Guarantee but maintained ties to Huione Group, highlighting the conglomerate’s central role in supporting Southeast Asia’s crypto crime ecosystem.

In 2024, illicit cryptocurrency transactions surged to at least $40.9 billion, 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, including the Lazarus Group and Tradetraitor, executed high-profile attacks, such as 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 a 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.

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.

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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