The digital underworld was rocked by the sudden takedown of two of its largest illicit marketplaces: Huione Guarantee (also known as Haowang Guarantee) and Xinbi Guarantee.
Together, these Telegram-based platforms facilitated over $35 billion in stablecoin transactions, serving as central hubs for money laundering, stolen data, human trafficking, and other criminal activities.
The Rise of Guarantee Marketplaces
According to the report, the origins of large-scale crypto crime trace back to darknet markets like Silk Road and Alphabay, which operated via the Tor browser.
However, the landscape has shifted in recent years, with illicit marketplaces migrating to encrypted messaging apps such as Telegram, which boasts over a billion users.
Guarantee marketplaces, primarily Chinese-language and catering to Southeast Asian scam networks, have emerged as key enablers of global online fraud.
These platforms do not directly sell illegal goods or services; instead, they provide a venue for thousands of merchants to connect with buyers, offering everything from money laundering and stolen data to torture devices and fake IDs.
The guarantee model relies on merchant deposits and escrow services to build trust between anonymous parties.
Transactions are almost exclusively conducted in Tether’s USDT stablecoin, leveraging the pseudo-anonymity and global reach of cryptocurrencies.
Huione Guarantee: The Biggest Illicit Marketplace in History
Founded in 2021 and operated by the Cambodian Huione Group, Huione Guarantee quickly grew into the largest illicit online marketplace ever recorded, processing more than $27 billion in stablecoin transactions.
Its merchants specialized in services for cybercriminals, including laundering scam proceeds, providing stolen personal data, and selling tools for online fraud.
The platform even facilitated the sale of physical devices used to control trafficked workers in scam compounds.
Xinbi Guarantee: A Close Second
Xinbi Guarantee, incorporated in Colorado but operating in Chinese, mirrored Huione’s structure and offerings.
Since 2022, it has amassed $8.4 billion in USDT transactions and served over 230,000 users.
Xinbi’s merchants provided not only money laundering services but also technology for scammers, fake documents, and even access to surrogacy services and intimidation-for-hire.
The Telegram Crackdown
The downfall of these marketplaces began with investigative work by blockchain analytics firm Elliptic, which traced billions in illicit flows and exposed the networks’ operations.
Prompted by Elliptic’s findings and media inquiries, Telegram moved decisively on May 13, banning thousands of accounts, channels, and even NFT-linked usernames associated with both Huione and Xinbi.
This action crippled the marketplaces’ ability to direct users to new channels, effectively severing their lifelines.
Huione Guarantee quickly announced its permanent closure but encouraged users to migrate to Tudou Guarantee, a rival platform in which it had recently acquired a stake.
Xinbi Guarantee, meanwhile, vowed to relaunch as “Xinbi 2.0,” though skepticism remains about its prospects and the risk of an exit scam.
Implications and the Future of Illicit Crypto Markets
The shutdown of Huione and Xinbi marks a watershed moment in the fight against online crime.
These platforms dwarfed previous darknet markets- Silk Road and Alphabay processed just $216 million and $639 million, respectively-highlighting the industrial scale of modern cyber scams.
The episode demonstrates the power of blockchain analytics and the willingness of platforms like Telegram to intervene when presented with clear evidence of criminal activity.
However, the battle is far from over. Some guarantee marketplaces are already exploring decentralized alternatives or developing their apps to evade future crackdowns.
As law enforcement and analytics firms adapt, the arms race between cybercriminals and those seeking to stop them will continue to evolve.
For now, the closure of these two giants is a significant victory for the victims of online scams and a warning to those who believed encrypted platforms offered impunity.
The era of unchecked illicit trade on mainstream messaging apps may be drawing to a close-but new threats are sure to emerge.
Find this Story Interesting! Follow us on LinkedIn and X to Get More Instant updates
%20(1).webp?w=1200&resize=1200,0&ssl=1&description=Together, these Telegram-based platforms facilitated over $35 billion in stablecoin transactions, serving as central hubs for money laundering){kind=link}