Telegram just recently made a big move by shutting down both Haowang and Xinbi, which were involved in processing a whopping $35 billion of illicit transactions in stablecoins. The closure of Haowang Guarantee, previously known as Huione Guarantee, marked the end of a platform that had facilitated over $27 billion in stablecoin transactions since 2021. This action was taken following insights provided by the blockchain analytics firm Elliptic on Tuesday. The crackdown on these platforms came in the midst of an investigation into thousands of suspected Chinese crypto-crime channels operating on Telegram, sparked by Elliptic’s report on Xinbi Guarantee.
According to Elliptic, Huione Guarantee had become the largest illicit online marketplace ever, with transactions totaling more than $27 billion. Xinbi Guarantee, on the other hand, processed transactions worth $8.4 billion since 2022, making it the second largest in the illicit marketplace scene. To put things into perspective, well-known “dark web” marketplaces like Silk Road and Alphabay only processed $216 million and $639 million, respectively. These marketplaces, which used to operate through the anonymous browser Tor, have now shifted their operations to Telegram, a messaging app with over a billion users. Huione and Xinbi are known as “guarantee” marketplaces, serving as platforms for merchants to sell to customers without directly selling goods and services themselves.
Not really sure why this matters, but it’s interesting to note the significant impact these illicit marketplaces had on the stablecoin transactions. The closure of Haowang and Xinbi by Telegram signifies a major step towards curbing illegal activities within the crypto world. With over $35 billion worth of transactions being processed through these platforms, it’s clear that there was a substantial amount of illicit activity taking place. It’s a reminder of the challenges that come with regulating the digital currency space and the importance of companies like Elliptic in providing insights to combat crypto crimes.
