Haowang, which primarily operated via Telegram, facilitated a wide array of illegal services including money laundering, personal data trafficking, and technology tools for online crime, according to blockchain analytics firm Elliptic.
Meanwhile, although Haowang rebranded from its previous identity as Huione Guarantee, US authorities continue to associate it with the Cambodian-based Huione Group. The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) recently proposed sanctions against Huione, accusing it of orchestrating a “money laundering enterprise” through its network of businesses.
A key component in the illicit transaction flow was USDH, a stablecoin issued by the Huione Group. Elliptic’s report notes that this stablecoin played a crucial role in evading sanctions and enabling high-volume transfers that were difficult to trace through traditional regulatory channels.
Notably, the use of stablecoins in laundering operations has drawn renewed attention from international regulators as they seek to impose tighter controls on digital asset transactions. In the case of Haowang, USDH served as a primary medium of exchange, facilitating services from fraudulent finance operations to personal data sales.
The shutdown of Xinbi and Haowang has “severely disrupted” what Elliptic describes as the two largest illicit marketplaces hosted on Telegram, both of which have processed a combined total of over $35 billion in USDT transactions.
Despite these setbacks, analysts at Elliptic noted that Haowang and Xinbi are reportedly attempting to rebuild their networks, with efforts to re-establish their presence on Telegram already underway.
The case also reinforces the growing role of platforms like Telegram in enabling or curbing the use of crypto for illicit activity, as international regulators push for greater accountability in the financial ecosystem.
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