Chinese-Language Crypto Scam Marketplace Shut Down on Telegram
A significant development in the battle against online crime has emerged as the notorious Chinese-language crypto marketplace, previously operating on Telegram, has officially shut its doors. Known initially as Huione Guarantee and more recently rebranded as Haowang Guarantee, this platform had been a critical player in facilitating illicit financial activities, enabling transactions totaling over $27 billion, according to reports from the crypto-tracing firm Elliptic.
The closure comes after Telegram took decisive action to ban thousands of accounts tied to this sprawling marketplace, which served an extensive network of third-party vendors often involved in money laundering and scams primarily targeting users in East Asia. The recent ban was a direct response to scrutiny following inquiries from various research entities, including a notable investigation by WIRED that highlighted the substantial volume of illegal transactions orchestrated within this marketplace.
In a brief and somewhat error-ridden statement, Haowang Guarantee announced on its website that it would cease operations, citing the suspension of its services, including NFTs associated with Telegram usernames. The announcement underscores the dramatic shift in the operational landscape for online scammers heavily reliant on platforms like Telegram for transactional anonymity.
Prior to its abrupt end, Haowang Guarantee facilitated a myriad of services for scammers, utilizing deposit and escrow systems to legitimize their often fraudulent transactions. The platform’s offerings primarily centered around money laundering using cryptocurrency Tether, but it also delved into providing tools and resources for conducting scams. These included access to stolen victim data, deepfake software, and various means used to control victims, some of which were reportedly employed in locations such as Myanmar, Cambodia, and the Philippines.
The ban on Haowang Guarantee’s accounts followed revelations regarding its sprawling network of illegal activities, which included money laundering, data theft, and potential involvement in sex trafficking through another platform known as Xinbi Guarantee. This latter marketplace has been reported to have facilitated around $8.4 billion in similar illicit dealings, further emphasizing the extensive reach of such operations.
Elliptic’s findings align with the broader trends of online criminality, which continue to evolve as strategies and tools become more sophisticated. As part of its criminal framework, the marketplace exemplifies the MITRE ATT&CK tactics of initial access via social engineering and monetary gain, with persistence maintainted through immediate rebranding and operational adjustments in response to scrutiny.
Industry experts view this shutdown as a pivotal moment in the ongoing efforts to combat online fraud and exploitation. "The closure of the largest dark-net marketplace to date is a tremendous victory in the fight against the pervasive issue of online scams," remarked Tom Robinson, co-founder of Elliptic. This significant disruption is expected to hinder the operational capabilities of scammers who heavily relied on such platforms for advancing their schemes.
As businesses continue to navigate the evolving landscape of cybersecurity threats, the closure of platforms like Haowang Guarantee serves as a stark reminder of the importance of vigilance and proactive measures against illicit online activities. Keeping abreast of developments in cybersecurity remains crucial for companies in safeguarding their interests and those of their customers.
