The Fall of Haowang Guarantee: Inside the Shutdown of the Internet’s Biggest Black Market

On May 13, 2025, the digital underworld suffered a seismic blow. Haowang Guarantee, a Telegram-based black market that facilitated over $27 billion in illicit cryptocurrency transactions, was shut down after Telegram banned thousands of its accounts, channels, and groups. Described by blockchain analytics firm Elliptic as the largest illicit online marketplace in history, Haowang’s collapse was triggered by a WIRED inquiry and amplified by U.S. regulatory action. This blog dives deep into the origins, operations, and downfall of Haowang Guarantee, exploring its far-reaching impact on the global crypto-scam ecosystem and what lies ahead.

The Rise of Haowang Guarantee

Haowang Guarantee, previously known as Huione Guarantee, emerged around 2021 as a Chinese-language marketplace operating on Telegram. Based in Cambodia and linked to the Huione Group—a financial conglomerate with ties to the family of Cambodian Prime Minister Hun Manet—Haowang became a cornerstone of Southeast Asia’s booming crypto-scam industry. By late 2024, it rebranded from Huione to Haowang Guarantee, likely to evade scrutiny after exposés by Elliptic and others.

The platform functioned as a peer-to-peer (P2P) marketplace, using a deposit and escrow system to “guarantee” transactions between vendors and buyers. This trust mechanism made it a go-to hub for cybercriminals, boasting over 970,000 users and thousands of vendors, according to the United Nations Office on Drugs and Crime (UNODC). Haowang offered a chilling array of illicit services, including:

• Money laundering through Tether (USDT), a stablecoin pegged to the U.S. dollar, enabling scammers to clean illicit funds.

  
  

• Stolen data for scams like “pig butchering,” where fraudsters pose as romantic or financial partners to defraud victims.

  
  

• Technological tools, such as deepfake software, fake IDs, and telecom infrastructure.

  
  

• Physical equipment, including GPS-enabled collars and electric batons used to enslave workers in scam compounds across Myanmar, Cambodia, and the Philippines.

  
  

• Extreme services, such as harassment-for-hire and, in some cases, apparent human trafficking.

  
  

Elliptic’s analysis revealed that Haowang processed $27 billion in transactions, surpassing the scale of previous darknet markets like Hydra, which handled about $5 billion. Its dominance was fueled by the industrialization of crypto-scams, particularly in Southeast Asia, where organized crime groups operate sprawling scam compounds.

The Mechanics of a Criminal Empire.

Haowang’s operations were sophisticated and diversified. The platform relied heavily on Tether (USDT) for untraceable P2P transfers, but in September 2024, Huione Group launched its own stablecoin, USDH, marketed as a “censorship-resistant” alternative to evade regulatory oversight. Beyond Haowang Guarantee, Huione Group built an ecosystem of crypto-related products:

• Huione Crypto: A Poland-licensed cryptocurrency exchange.

• Xone Chain: A proprietary blockchain network.

• Huione Pay: A payment services platform.

• ChatMe: A messaging app to reduce dependence on Telegram.

• Online gambling: A platform that processed nearly $6 billion in crypto transactions, likely for money laundering disguised as gambling.

  
  

Elliptic identified thousands of crypto wallet addresses tied to Haowang’s vendors, uncovering links to high-profile crimes, including $220,000 stolen from India’s WazirX exchange in a 2024 heist attributed to North Korean hackers. The platform’s services also supported scam compounds, where trafficked workers are forced to perpetrate fraud, contributing to a humanitarian crisis in the region.

The Catalyst: WIRED’s Inquiry and Telegram’s Purge

The downfall of Haowang Guarantee began with investigative journalism. On May 13, 2025, Telegram banned thousands of accounts associated with Haowang and a similar marketplace, Xinbi Guarantee, following a WIRED inquiry. The inquiry highlighted new findings from Elliptic, which had been tracking Haowang’s operations for years. Telegram’s spokesperson, Remi Vaughn, stated, “Communities previously reported to us by WIRED or included in reports published by Elliptic have all been taken down. Criminal activities like scamming or money laundering are forbidden by Telegram’s terms of service and are always removed whenever discovered.”

The ban crippled Haowang’s Telegram infrastructure, which relied on channels, groups, and NFT-based usernames for operations. That same day, Haowang announced its closure on its website with a poorly worded statement: “Telegrame were blocked all of our NFT, Channels and group on May 13th 2025, Haowang Grarantee will cease operation from now.”

Regulatory pressure amplified the impact. In early May 2025, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) designated Huione Group as a money laundering operation, accusing it of moving at least $4 billion in illicit funds between August 2021 and January 2025. FinCEN’s sanctions aimed to cut Huione off from the U.S. financial system, targeting funds from online scams and North Korean cyber heists.

Xinbi Guarantee and the Broader Ecosystem.

The Telegram purge also targeted Xinbi Guarantee, a marketplace that facilitated $8.4 billion in transactions since 2022. Xinbi offered similar services, including money laundering, stolen data, and extreme offerings like intimidation-as-a-service and apparent sex trafficking. Intriguingly, Xinbi was linked to a Colorado-based company incorporated in 2022 but listed as delinquent in January 2025, raising questions about its U.S. connections.

Elliptic is monitoring approximately 30 similar marketplaces, suggesting Haowang and Xinbi are part of a broader China-based underground banking system built around stablecoins and Telegram. Another platform, Tudou Guarantee, reportedly tied to Haowang’s ownership, has seen a surge in users since the shutdown, indicating that scammers are migrating to alternatives.

The Impact: A Blow to Crypto Crime.

The shutdown of Haowang Guarantee is a landmark victory in the fight against crypto-fueled cybercrime. Tom Robinson, Elliptic’s co-founder, called it a “game changer” and a “huge win,” noting that it “will put a real dent in the ability of online scammers to do what they do.” The disruption of Haowang’s infrastructure, combined with FinCEN’s sanctions, is expected to hinder scammers’ ability to launder funds and target victims.

However, the crypto-scam ecosystem is resilient. Key implications include:

• Criminal Adaptation: Huione Group’s political ties to Cambodian elites and its diversified crypto infrastructure (e.g., USDH, Xone Chain) suggest it may rebuild on less regulated platforms or decentralized networks. Robinson likened these actors to “very large mice” in a cat-and-mouse game.

• Alternative Platforms: The $8.4 billion processed by Xinbi and the rise of Tudou Guarantee highlight the adaptability of scammers.

• Regulatory Hurdles: Stablecoins like USDT and USDH, which are difficult to trace in P2P transactions, pose ongoing challenges. Tether’s ability to freeze payments has not been consistently applied to disrupt these marketplaces.

• Telegram’s Role: While Telegram acted swiftly, its history of lax moderation allowed Haowang to thrive for years. Previous bans on Huione Guarantee’s channels in February 2025 were easily circumvented, raising doubts about long-term enforcement.

• Humanitarian Crisis: Scam compounds in Southeast Asia, supported by Haowang’s services, have enslaved thousands of trafficked workers. The shutdown may disrupt these operations, but the underlying issues of human trafficking and forced labor persist.

The Bigger Picture

Haowang Guarantee’s rise reflects the professionalization of crypto-based crime, which now spans scams, money laundering, and state-sponsored cyber heists. The UNODC has highlighted the role of crypto mining and stablecoins in evading anti-money laundering controls. Southeast Asia, with its weak regulatory oversight and political corruption, has become a hub for these activities, but their impact is global, with funds flowing to Africa, South America, and beyond.

The shutdown underscores the power of investigative journalism and blockchain analytics. WIRED’s inquiry, paired with Elliptic’s transaction tracing, forced Telegram’s hand and drew regulatory attention to Huione Group. However, gaps remain—Huione’s crypto app was still available on Apple’s App Store as of February 2025, despite Google’s removal, highlighting inconsistencies in private-sector accountability.

What’s Next?

The fall of Haowang Guarantee is a significant milestone, but the fight against crypto-scams is far from over. International cooperation, stricter platform moderation, and innovative regulatory approaches to stablecoins are essential to curb this global epidemic. As scammers migrate to platforms like Tudou Guarantee, law enforcement and researchers must stay vigilant.

For now, the shutdown of Haowang Guarantee sends a clear message: even the largest illicit marketplaces are not untouchable. But in the ever-evolving world of cybercrime, the next challenge is already on the horizon.