Haowang Guarantee Closure and Its Implications
A recent report from Chainalysis, a blockchain analytics firm, has revealed that the recent shutdown of Haowang Guarantee, previously the largest illicit online market for cryptocurrency fraudsters, is unlikely to significantly hinder the world of crypto crime. Once operating under the name Huione Guarantee, this online marketplace, which functioned primarily through Telegram, provided services including money laundering, access to stolen data, and scam technology all without requiring users to verify their identities.
Enforcement Actions and Market Adaptation
The closure of Haowang came following a major initiative by Telegram, spurred by actions from the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), which identified the Cambodian parent company, Huione Group, as a money laundering entity associated with North Korean cybercriminals. This crackdown also extended to another significant platform, Xinbi Guarantee, which was removed from Telegram.
While these steps were initially seen as a breakthrough in the fight against digital scams operating on secure messaging apps, Chainalysis pointed out in its findings that the success may be overstated. They indicated that the landscape of crime surrounding these “guarantee” services shows a remarkable ability to adapt.
According to the analysis, many vendors from Haowang have quickly transitioned to alternative platforms or diversified their operations across smaller marketplaces. This agility demonstrates how users can rapidly alter their broker partnerships and communication methods, thereby mitigating the effects of such enforcement actions. Chainalysis emphasized that although the takedown of Huione Group might result in a temporary redistribution of criminal activities or caution among users, the structural foundations that enable crypto crime remain largely unchanged.
The Continuing Threat of Crypto Crime
Telegram has continued to serve as a hub for these illegal activities, profiting from its user-friendly access and anonymous features but offers no clear plans for future regulatory measures.
In the broader context of crypto crime, Chainalysis reported that illicit activities in cryptocurrency reached at least $40.9 billion in 2024, with thefts via hacks accounting for $2.2 billion alone—an increase of 21% over the previous year. Groups affiliated with North Korea, such as Lazarus and Tradetraitor, were responsible for over 60% of these heists, with notable incidents including a significant $300 million breach at Japan’s DMM Bitcoin exchange.
The implications of these criminal activities extend beyond the digital realm, as cybercriminals increasingly leverage cryptocurrencies to support a variety of unlawful enterprises—from investment scams and AI-driven romance schemes to drug distribution and even acts of physical violence, as highlighted by a kidnapping attempt involving the CEO of the cryptocurrency exchange Paymium.
A Call for a Sophisticated Approach
Reflecting on these developments, Chainalysis argued that while the removal of certain platforms garners attention, genuine progress in combating crypto fraud demands a more sophisticated approach focused on monitoring behaviors associated with blockchain transactions. They emphasized the need for real-time tracking of illicit money flows to effectively counter these threats, even in the wake of platform closures.
