Telegram has taken decisive action against the murky underworld of illicit online marketplaces by shuttering Haowang Guarantee, previously known as Huione Guarantee. This notable move, executed on Tuesday, follows crucial insights from blockchain analytics firm Elliptic, marking a significant strike in the battle against crypto crimes flourishing within the encrypted corridors of Telegram.
The Elusive World of Guarantee Marketplaces
Haowang Guarantee isn’t your typical dark web den; it’s a “guarantee” marketplace—a term used for platforms offering a secure venue for transactions between buyers and sellers, without directly vending any goods. Since its launch in 2021, Haowang facilitated a staggering $27 billion in stablecoin transactions, crowning it the largest of its kind. For context, once-notorious Silk Road and Alphabay handled a mere fraction of this sum, with $216 million and $639 million, respectively.
Elliptic’s analysis underscored the sheer scale of these operations, revealing that alongside Xinbi Guarantee—shut down earlier—these platforms processed a combined $35 billion. Xinbi alone accounted for $8.4 billion since 2022. These figures underscore a seismic shift in illicit transactions from the dark web’s traditional Tor browsers to Telegram, an app boasting over a billion users worldwide. This shift is further highlighted by Ethena’s partnership with TON to offer USDe to one billion Telegram users, showcasing the platform’s expansive reach.
China’s Crypto-Crime Crackdown
The closure of Haowang unfolds against the backdrop of a broader crackdown on suspected Chinese crypto-crime channels operating on Telegram. This isn’t an isolated incident but part of a sweeping operation targeting thousands of such channels. According to Elliptic’s report, these actions are in response to the pervasive use of Telegram by cryptocurrency criminals who exploit its encrypted, decentralized nature to conduct transactions and evade detection.
Here’s what’s interesting: the shift to Telegram mirrors a broader trend in the crypto underbelly, where anonymity and wide accessibility are prized. Experts like Tom Robinson, co-founder of Elliptic, have noted that “these platforms have evolved by leveraging mainstream technology to facilitate vast networks of criminal activities that were once confined to the shadows of the internet.”
A Broader Perspective on Crypto Crime
The implications of Telegram’s crackdown are profound, raising questions about the future dynamics of illicit online trading. Market observers speculate whether this will deter other platforms or push them further underground. However, the crackdown is a testament to the efficacy of blockchain analytics in exposing and dismantling these networks.
In recent years, blockchain firms like Elliptic have played an instrumental role in tracing illegal crypto transactions, providing law enforcement with the tools needed to identify and act against perpetrators. Their recent report revealing that one in five cross-chain crypto investigations involves more than ten blockchains highlights the complexity and interwoven nature of these illicit networks. This complexity is echoed in the development of an AI-powered court system in crypto with GenLayer, which aims to streamline legal processes in the digital currency space.
The Road Ahead: Uncertain Yet Promising
The closure of Haowang and Xinbi signifies a significant victory for those combating crypto crime, but it also underscores the ongoing cat-and-mouse game between regulators and criminals. As crypto markets continue to mature, the need for robust security measures and vigilant monitoring becomes ever more pressing.
Looking forward, the challenge lies in adapting to the ever-evolving tactics of cybercriminals who are quick to exploit new technologies and platforms. The industry must remain agile, and regulators must continue to collaborate globally to stem the tide of illicit activities.
In the ever-shifting landscape of cryptocurrency, the only certainty is change. Whether Telegram’s recent actions will set a precedent for other platforms or merely drive operations further underground remains to be seen. One thing, however, is clear: the battle against crypto crime is far from over, and vigilance will be key in navigating the uncertain waters ahead.
Source
This article is based on: Telegram Shuts Down ‘Largest Illicit Online Marketplace’ After Elliptic’s Insights
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
