The closure of **Haowang Guarantee**, once the largest illicit online marketplace for crypto scammers, is far from a final blow to **crypto crime**, according to a report published Monday by blockchain analytics firm **Chainalysis**.
Haowang, previously known as Huione Guarantee, was a **Telegram-based marketplace** offering **money laundering** services, stolen data, and scam technology without requiring **identity verification**. Its shutdown followed a sweeping crackdown by Telegram after the U.S. Treasury’s FinCEN identified **Haowang’s parent**, the Cambodian-based Huione Group, as a money laundering operation linked to **North Korean cyber actors**.
Criminal Ecosystem Behind ‘Guarantee’ Services Proves Resilient
Telegram also removed accounts connected to **Xinbi Guarantee**, the second-largest platform of its kind. These actions were hailed as progress in **disrupting scam networks** that had taken root on encrypted messaging platforms. Yet, Chainalysis warned that the victory is more symbolic than structural.
In its report, Chainalysis noted that the **criminal ecosystem** around “guarantee” services has proven highly adaptable. “These services are likely designed for **redundancy**, speaking to the resilience of criminals and the lucrative nature of their businesses,” the report stated.
Vendors who once operated on Haowang have already moved to new platforms or **split** across several smaller marketplaces. The same users, Chainalysis said, quickly adjust to **new brokers** and communication channels, reducing the impact of isolated takedowns.
“For now, the Huione Group takedown may shift some traffic, scramble broker relationships, or inspire short-term caution,” Chainalysis elaborated, “but the structural enablers of **crypto crime** unfortunately remain intact.” Telegram continues to serve as the primary base for these illicit operations due to its ease of access and pseudonymous features.
Despite promises of enforcement, the platform has not disclosed whether further **crackdowns** will follow. Chainalysis concluded that while platform removals may draw headlines, lasting progress against **crypto scams** will depend on more advanced, behavioral-focused monitoring of blockchain transactions.
Rather than solely dismantling platforms, the firm urges efforts to track illicit funds through **on-chain movement patterns**, where real-time data may expose fraud even when platforms go dark.
Crypto Crime Turns Violent as Illicit Transactions Top $40B in 2024
Illicit cryptocurrency activity surged to at least **$40.9 billion** in 2024, according to Chainalysis, with the number likely to grow as more **criminal-linked wallets** are identified. Hacks alone accounted for **$2.2 billion** in stolen assets—a **21% increase** from the previous year.
**North Korean-linked groups**, including **Lazarus** and **Tradetraitor**, were behind over **60%** of those thefts, with major incidents like the **$300 million hack** of Japan’s **DMM Bitcoin exchange** among their hits. However, the threats extend beyond online exploits. Criminal groups are increasingly using crypto to fund and conceal a wider range of crimes—from **investment scams** and **AI-enhanced romance frauds** to drug trafficking and even **physical violence**.
In an alarming case on May 13, 2025, the daughter and grandson of **Paymium’s CEO** were nearly **kidnapped** in Paris by masked men. This incident highlights a frightening trend of escalating violence linked to **crypto crime**.
Platforms like **Huione Guarantee** have played a key role in **laundering stolen funds**, helping cybercriminals convert digital profits into **real-world danger**. The implications of these activities not only threaten individuals but also **undermine** the integrity of the entire cryptocurrency space.
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