Telegram’s investigation has resulted in the closure of Haowang Guarantee, a massive black market driven by cryptocurrency that is thought to have enabled over $27 billion in illegal transactions.
The platform was shut down in response to fresh investigative results that revealed its close connections to money laundering, fraud, and cybercrime in China and abroad.
Haowang Guarantee Ran Secret Escrow for Cybercriminals on Telegram
Haowang Guarantee operated as a covert escrow business, mainly via Telegram, that connected darknet operators, scammers, and cybercriminals.
Using popular cryptocurrencies like Bitcoin and Tether to mask transactions, the marketplace allegedly made it possible for widespread cryptocurrency frauds, such as ransomware payments, phishing, and illicit personal data trafficking.
The removal of the platform shows that messaging services are under increasing pressure to stop illegal activity hosted on their networks. When presented with solid proof of Haowang’s activities, Telegram, which is frequently criticized for its slack moderation in private and group channels, seemed to have moved quickly.
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Haowang Shutdown Deals Major Blow to Asian Cybercrime Networks
Given that Haowang Guarantee was regarded as one of the most powerful crypto-based criminal networks in Asia, cybersecurity experts see this as a serious setback to organized digital crime in the area.
More enforcement may come as authorities are currently looking into the network’s digital footprint in order to take additional action and track down the enormous quantities of cryptocurrency that have been laundered.
The largest cryptocurrency-powered illegal market on the internet, Haowang Guarantee, was abruptly shut down when Telegram conducted a massive account cleanse, as first reported by WIRED.
A brief statement on Haowang’s website acknowledged the deletion, stating that on May 13, the messaging platform blocked their “NFT, Channels, and group.”
Elliptic Data Triggers WIRED Probe, Leading to Haowang Crackdown
WIRED’s study, which was predicated on new data from blockchain analytics company Elliptic, seems to have been the catalyst for the crackdown.
The company discovered Haowang’s widespread involvement in enabling illegal cryptocurrency transactions and also located Xinbi, a smaller but connected marketplace. In a prompt response, Telegram banned thousands of accounts connected to Xinbi’s and Haowang’s activities.
The move marks a significant blow to crypto-fueled cybercrime, as both platforms had become hubs for money laundering, scams, and other illegal activity.
The Xinbi Guarantee Case: What Had Happened?
Connected with Haowang’s case, since 2022, Xinbi Guarantee, a Chinese-language marketplace, has processed at least $8.4 billion in Tether stablecoin and is associated with a Colorado-incorporated company.
The website offered resources for pig butchering scams, in which victims were tricked into falling for fraudulent investment schemes.
A variety of money laundering services are provided by merchants on the Xinbi platform. Channels are categorized according to how they will purify stolen money and transform it into so-called white capital.