Telegram darknet market crackdown has led to the shutdown of Xinbi and Huione Guarantee, disrupting platforms that facilitated over $35 billion in illicit transactions.
The Fall of a Criminal Empire: How Telegram Took Down History’s Biggest Darknet Market
In a significant development, Telegram has closed Haowang Guarantee, a Chinese-run darknet market responsible for $27 billion in illegal crypto transactions, primarily via Tether (USDT).
- Operating openly on Telegram, the platform had become a central hub for:
- Pig-butchering scams
- Money laundering networks
- Stolen identity sales
- Call center fraud tools (including physical restraints)
Key Details of the Takedown
- The May 13 purge led to thousands of accounts being banned.
- Haowang’s parent company, the Huione Group, facilitated transactions exceeding $98 billion.
- The platform was blacklisted by FinCEN (Financial Crimes Enforcement Network).
- A new successor, Xinbi Guarantee, is already surfacing with $8.4B in transaction volume.
Why This Marketplace Was Different
Unlike traditional darknet markets like Silk Road, Haowang Guarantee operated publicly on Telegram:
- Illegal services were advertised in open group chats.
- Used escrow systems to guarantee trust in criminal transactions.
- Stablecoins like Tether enabled seamless, anonymous, cross-border transactions.
Tom Robinson, co-founder of Elliptic, called this “the largest darknet market ever.” Its closure is a major step in curbing global fraud.
The Paradox of Telegram’s Crackdown
While cracking down on criminal abuse, Telegram maintains its strong pro-privacy stance, resisting pressure from regulators, especially in France, demanding encryption backdoors.
“We won’t weaken encryption for the government,” said a Telegram spokesperson.
This crackdown shows Telegram walking a fine line—balancing user privacy and compliance with global law enforcement.
What’s Next?
- Police are leveraging blockchain forensics to trace illicit funds.
- Criminal groups are migrating to new platforms like Xinbi Guarantee.
- Rising scrutiny on stablecoins used in global money laundering.
Conclusion
Haowang’s shutdown marks a major law enforcement victory but also underscores Telegram’s ongoing struggle to police its own platform—without compromising its core value: user privacy. As criminals evolve, this tension is only set to grow.
