Huione's Darknet Marketplace Thrives Despite Regulatory Crackdowns

Huione, a prominent darknet marketplace, continues to operate at full capacity despite the shutdown of its website and Telegram channels. On May 13, Haowang Guarantee, previously known as Huione Guarantee, announced its shutdown following the banning of thousands of its associated accounts and channels by the Telegram messaging service. However, according to a report by Chainalysis, the activity linked to the illicit marketplace has not declined since the so-called shutdown. The platform continues to process billions of dollars worth of transactions, indicating a highly resilient system that operates largely independent of its public-facing infrastructure.

The resilience of Huione is further highlighted by its response to regulatory actions. The Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed on May 1 to bar the Huione Group from accessing the American banking system, accusing the company of aiding North Korea’s state-sponsored Lazarus Group in laundering cryptocurrency. Typically, US banks react immediately to such announcements to avoid regulatory risk. However, Huione has shown minimal operational impact despite the FinCEN notice. Transactional data suggests that not only did the transaction volume not drop following the announcement, but it actually increased.

The Huione Group’s operations extend beyond its darknet marketplace. A report from a crypto analytics firm on May 30 revealed that the group is still operating channels for its VIP vendors and has received at least $81 billion in crypto since 2021, surpassing the Hydra marketplace. Huione serves as a central conduit for various cyber-enabled criminal activities, including pig butchering scams, fraud, and cyber heists. Additionally, Huione’s cryptocurrency exchange platform has returned to the scene, retaining its old logo under a new domain. The exchange’s social media accounts remain active across different platforms, including its Telegram channels.

The persistence of the Huione Group and its subsidiaries underscores a broader challenge in addressing sophisticated organized criminal groups that can operate at scale while evading law enforcement. Chainalysis suggests that an “ecosystem-wide response,” involving sustained, multi-vector enforcement strategies, is necessary to effectively combat illicit companies like Huione. This approach would focus on the complex underlying architecture that supports these networks, rather than relying solely on surface takedowns. The resilience of Huione highlights the need for updated enforcement strategies to tackle the evolving landscape of cybercrime and illicit activities.