“Largest Darknet Marketplace Ever” Telegram Shuts Down $27 Billion Crypto Black Market

TLDRTelegram has shut down Haowang Guarantee, described as “the largest darknet marketplace to have ever existed”The Chinese-language marketplace facilitated an estimated $27 billion in illicit transactions, primarily using TetherThe shutdown followed a Telegram purge of thousands of associated merchant accounts on May 13, 2025The marketplace provided services to crypto scammers including money laundering, stolen data, and equipment for scam operationsA second marketplace called Xinbi Guarantee has been identified with $8.4 billion in transactions and may be growing as scammers migrateHaowang Guarantee, a massive Chinese-language darknet marketplace operating on Telegram, has ceased operations following a widespread ban of thousands of associated accounts. The shutdown on May 13, 2025, marks the end of what blockchain security firm Elliptic called “the largest darknet marketplace to have ever existed.”The marketplace announced the closure on its website in a brief message stating, “Since all our NFTs, channels and groups were blocked by Telegram on May 13, 2025, Haowang Guarantee will cease operations from now on.”Haowang Guarantee, previously known as Huione Guarantee, facilitated an estimated $27 billion in illicit transactions, primarily using the Tether (USDT) stablecoin.The marketplace served as a hub for crypto scammers, offering money laundering services, stolen personal data for pig butchering scams, telecommunications infrastructure, deepfake software, fake IDs, and even physical restraint devices used in scam call centers across Southeast Asia.The Telegram PurgeTelegram’s action came shortly after inquiries from tech publication Wired and research from blockchain security firm Elliptic. Telegram spokesperson Remi Vaughn confirmed to Wired that “communities previously reported to us by WIRED or included in reports published by Elliptic have all been taken down,” adding that “criminal activities like scamming or money laundering are forbidden by Telegram’s terms of service.”The timing of the shutdown also follows a designation by the US Treasury’s Financial Crimes Enforcement Network (FinCEN) in early May. FinCEN listed Huione Group, the parent company of Haowang Guarantee, as a money laundering operation that would be cut off from the US banking system.Tom Robinson, co-founder of Elliptic, called the shutdown “a huge win” and “a game-changer in terms of overall online criminal markets.” He stated it would “put a real dent in the ability of online scammers to do what they do” as the marketplace was “a key enabler of the global scam epidemic.”Rising AlternativesDespite this major shutdown, other similar marketplaces appear to be emerging. Blockchain security researchers have identified another Telegram-based illicit marketplace called Xinbi Guarantee, which has already processed an estimated $8.4 billion in transactions.Elliptic notes this figure should be considered the “lower bounds of the true volume of transactions on the platform.” Xinbi was reportedly linked to a Colorado-based company incorporated in 2022 but listed as delinquent in January 2025.Researchers have also identified a third marketplace called Tudou Guarantee, which allegedly has connections to Haowang’s ownership. According to Robinson, Tudou Guarantee has seen “a major surge in new users” following the Haowang shutdown.These black markets have unveiled what Elliptic describes as a “China-based underground banking system” built around stablecoins and crypto payments, which is being used for money laundering on a large scale.The shutdown may only be a temporary setback for the crypto-scam industry. Robinson notes that the effectiveness of Telegram’s crackdown will depend on how seriously the messaging platform continues to pursue these marketplaces as they emerge in new forms.“Are they going to pursue all of these marketplaces and continue to do so as new ones emerge?” Robinson asks. If Telegram maintains its crackdown, he suggests the market operators might migrate to other messaging services with less oversight or even to decentralized platforms where they can’t be effectively banned.Haowang had powerful backing from a company with links to businesses associated with Cambodia’s ruling family. Huione Group, the parent company, includes a company linked to the family of Cambodia’s prime minister, Hun Manet, with the prime minister’s cousin Hun To serving as one of those companies’ directors.Robinson concluded, “Online crime is a cat-and-mouse game in general. But these are very large mice. It’s a big blow to the criminal ecosystem that will take a long time to recover from.”The post “Largest Darknet Marketplace Ever” Telegram Shuts Down $27 Billion Crypto Black Market appeared first on CoinCentral.