In a significant blow to the global crypto crime network, Telegram has shut down Haowang Guarantee, a $27 billion laundering empire linked to money laundering, hacking, and human trafficking rings across Southeast Asia. The crackdown, initiated after a comprehensive investigation by blockchain analytics firm Elliptic, led to the closure of thousands of Telegram accounts associated with Haowang’s criminal operations.
According to Elliptic, Haowang operated as a central laundering hub for criminal networks, including Cambodia’s notorious Huione Group, which allegedly laundered $4 billion through its USDH stablecoin. The stablecoin was specifically designed to bypass sanctions and disguise illicit funds, allowing Haowang’s operators to wash billions in stolen assets through anonymous Telegram channels.
Despite the enforcement action, Haowang and its sister platform Xinbi are reportedly attempting to rebuild their network using cloned Telegram channels and encrypted communications, highlighting the resilience of these criminal operations.
Dark Market Operations and the Crypto Crime Network
Elliptic’s investigation uncovered that Haowang Guarantee and Xinbi processed over $35 billion in USDT transactions, serving as primary laundering mechanisms for North Korean hackers, ransomware operators, and drug traffickers.
A significant portion of these funds was traced back to the Lazarus Group, a North Korean cybercrime syndicate responsible for some of the largest crypto heists in recent history. The group has been linked to the theft of over $1.34 billion in 2024, including a $620 million attack on Japan’s DMM Bitcoin exchange.
Haowang’s extensive network also included transactions related to human trafficking and kidnapping schemes, with criminal syndicates using crypto assets to facilitate ransom payments and fund violent attacks. On May 13, French authorities foiled a kidnapping attempt involving the daughter and grandson of a Paymium co-founder, a plot allegedly funded through illicit crypto channels.
FinCEN Cracks Down on Huione Group
As Telegram closed Haowang and Xinbi, the U.S. Treasury’s FinCEN moved to suspend Huione Group’s access to the U.S. financial system, a move that could significantly disrupt the conglomerate’s money-laundering operations.
Despite being banned, Haowang has continued to operate under different aliases, using Telegram’s encryption and decentralized structure to evade detection. Elliptic warns that over 30 similar platforms remain active, with operators shifting to smaller, fragmented networks to avoid further enforcement actions.
Crypto Crime on the Rise – Can Law Enforcement Keep Up?
While the Haowang takedown marks a rare victory for regulators, the broader crypto crime landscape is expanding rapidly. In 2024, illicit transactions reached a staggering $40.9 billion, a 21% increase from the previous year, according to Chainalysis.
North Korean hackers remain the most prolific perpetrators, accounting for over $1.34 billion in stolen assets through sophisticated cross-chain laundering schemes and DeFi exploits. Meanwhile, organized crime networks have increasingly turned to crypto for drug trafficking, extortion, and even violent kidnappings, complicating enforcement efforts.
Despite these challenges, law enforcement agencies are stepping up efforts to counter crypto crime, using advanced blockchain analysis tools to track transactions and disrupt criminal networks. However, as criminals adapt and evolve, the battle to control the crypto underworld is far from over.
The Haowang case underscores the urgent need for global regulatory coordination and enhanced surveillance to prevent the next $27 billion laundering empire from emerging in the shadows of encrypted platforms like Telegram.
