Telegram’s role as a haven for crypto-related criminal activities came under intense scrutiny as the $27 billion Haowang Guarantee platform was shut down on May 13, following a targeted crackdown by Telegram. The enforcement action, prompted by blockchain analytics firm Elliptic, led to the closure of thousands of Telegram accounts linked to Haowang’s illicit operations, which included money laundering, hacking tool sales, and personal data trafficking.
According to Elliptic, Haowang operated as a full-service laundering hub for Southeast Asian crypto crime rings, including ties to Cambodia’s Huione Group, a notorious network accused of creating the stablecoin USDH to launder approximately $4 billion in criminal proceeds.
Despite Telegram’s intervention, the problem is far from resolved. Elliptic’s co-founder Tom Robinson revealed that Haowang and Xinbi—another targeted platform—are already attempting to re-establish their operations on Telegram, taking advantage of the platform’s encryption and decentralized structure. Elliptic warned that at least 30 similar dark marketplaces remain active, facilitating the trade of stolen data and criminal services.
The U.S. Treasury’s FinCEN has also stepped in, proposing to suspend Huione Group’s access to the U.S. financial system, a move that could cripple the conglomerate’s ability to finance its operations through traditional banking channels. However, the challenge remains daunting as Haowang’s rebranding from Huione Guarantee demonstrates the network’s agility in evading enforcement actions.
Criminal Networks Exploit Crypto for Dark Market Crimes
The rise of crypto-based laundering platforms like Haowang has coincided with a surge in violent crypto crime. In 2024, stolen crypto assets surged to $40.9 billion, a 21% increase from the previous year, according to Chainalysis.
A significant portion of these funds—over $1.34 billion—was attributed to North Korea’s Lazarus Group, which executed multiple high-profile cyberheists, including the theft of 4,502.9 Bitcoin from DMM Bitcoin exchange in Japan.
However, it’s not just cybercrime that’s on the rise. Traditional crimes are also being funded through illicit crypto channels, as demonstrated by a recent attempted kidnapping in Paris. On May 13, the daughter and grandson of Paymium’s co-founder narrowly escaped a broad daylight abduction attempt, allegedly orchestrated by a gang funded through crypto.
Authorities warn that the combination of cryptocurrency, encrypted communication, and decentralized financial systems has created a thriving environment for organized crime. The emergence of large-scale laundering services like Haowang and Xinbi has enabled criminal networks to process billions in illegal transactions, making it increasingly difficult for law enforcement to disrupt their operations effectively.
