Telegram Shuts Down Haowang Guarantee Cryptocurrency Criminal Organization
The Downfall of the Digital UnderworldTelegram has pulled the plug on the most significant crypto-fueled illegal marketplace ever seen, putting an end to a network responsible for laundering more than $27 billion across the cybercrime landscape of Asia.
On Monday, the messaging platform declared war on Haowang Guarantee, banishing thousands of accounts and putting the marketplace out of commission almost instantly.
"Telegram fingered all our NFT channels and groups... Haowang Guarantee goes offline now," declared a statement on the shady marketplace's website.
Blockchain analytics firm Elliptic, who's been tailing Haowang since mid-2023, reported that the platform's vendors had peddled laundered USDT, stolen data, forged IDs, and tools exploited in labor camps across Southeast Asia's hotbed of cybercrime.
Telegram vouched for the removal of the highlighted communities and restated its policy against money laundering and scam activity, according to a Wired report.
"This is a major win," said Elliptic co-founder Tom Robinson, praising the shutdown as a significant blow to the infrastructure of organized cyber fraud.
Telegram acknowledged the actions taken in a confirmation to Wired, confirming the removal of networks pointed out in multiple investigations, including those mentioned by Elliptic and covered in media.
In a January report, Elliptic dubbed Huione "the largest online illicit marketplace to have ever existed," significantly outpacing Silk Road and AlphaBay in size and financial volume.
The Evolution of the Scene
The demise of Haowang hasn't deterred its ilk from regrouping.
According to Elliptic's latest report, another Telegram-based marketplace, Xinbi Guarantee, continues to operate, having processed over $8.4 billion in questionable funds.
Some vendors on Xinbi advertise services like laundering funds from pig butchering scams and fraud targeting Westerners. Elliptic found links between Xinbi and the $235 million WazirX hack, attributed to North Korea's Lazarus Group.
Despite the upheaval, it's rumored that Haowang operators may transition to a new black market brand, Tudou Guarantee, which has gained a following since Haowang's downfall.
A New Day, A New Scene
The disappearance of Haowang hasn't heralded the end of the digital underworld, as new players like Xinbi and Tudou Guarantee seize the opportunity to fill the vacuum. The game of cat and mouse between law enforcement and these illicit entities continues unabated.
While the future of these new platforms remains uncertain, one thing is clear: A significant chunk of the Asian cybercrime economy still operates under the radar, and the race to stay one step ahead is an ongoing battle.
- The blockchain analytics firm, Elliptic, reported that the vendors on the new Telegram-based marketplace, Xinbi Guarantee, are offering services like laundering funds from pig butchering scams and fraud targeting Westerners.
- In a January report, Elliptic dubbed another Telegram-based marketplace, Xinbi Guarantee, as the largest online illicit marketplace to have ever existed, significantly outpacing Silk Road and AlphaBay in size and financial volume.
- Telegram, in a confirmation to general-news sources like Wired, confirmed the removal of networks pointed out in multiple investigations, including those mentioned by Elliptic and covered in media.
- Cybersecurity experts are warning of the emergence of a new black market brand, Tudou Guarantee, rumored to be operated by the Haowang operators, as they transition their operations to fill the vacuum created by the takedown of Haowang.
- As the digital underworld evolves, technology continues to play a crucial role, with crypto assets like stablecoins (USDT) being used to facilitate illegal activities on platforms like these Telegram-based marketplaces, and NFT channels and groups being utilized for illegal activities as well.
