Telegram Shuts Down $27 Billion Crypto Crime Network
- Telegram shuts down $27 billion network on May 13.
- Crypto crime crackdown impacts stablecoin transactions globally.
- Haowang network cease operation affects illicit financial activities.
Telegram has closed Haowang Guarantee’s $27 billion crypto network on May 13, dismantling a structure used for illicit activities worldwide.
The action underscores growing scrutiny over crypto platforms and impacts global stablecoin transactions. Immediate market effects remain minimal, but highlights regulatory vigilance.
Haowang’s $27B Network Dismantled by Telegram
The $27 billion Haowang Guarantee was a major hub for illicit crypto transactions. Telegram’s decision marked a significant enforcement action against online crime.
Elliptic provided investigation data leading to the shutdown. Thousands of Telegram accounts were banned, upending Haowang’s widespread operations.
Stablecoin Usage Faces Disruption Post-Shutdown
Transactions involving stablecoins saw a notable disruption as Haowang used USDT predominantly. This may lead to increased exchange scrutiny and possible liquidity effects.
No immediate impact on major crypto assets like BTC or ETH but potential challenges arise for OTC markets, particularly affecting Chinese clients. Remi Vaughn, a spokesperson for Telegram, commented, “Communities previously reported to us by WIRED or included in reports published by Elliptic have all been taken down. Criminal activities like scamming or money laundering are forbidden by Telegram’s terms of service and are always removed whenever discovered.”
Haowang Takedown Exceeds Silk Road’s Scale
Compared to Silk Road and AlphaBay, the Haowang takedown overshadows previous actions in scale. Past crackdowns led to displacement, rather than elimination, of criminal networks.
Experts suggest enhanced analytics tools may deter similar illicit use of public platforms, potentially reshaping future crypto enforcement scenarios.
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