With $24 billion in cryptocurrency transactions, the illicit HuiOne Telegram market surpasses Hydra.

The Telegram-based marketplace HuiOne Guarantee and its associated vendors have collectively amassed over $24 billion in cryptocurrency transactions, surpassing the now-defunct Hydra to become the largest illicit online marketplace ever recorded, according to blockchain analytics firm Elliptic. Monthly cryptocurrency inflows to the platform have surged by 51% since July 2024.

Origins and Controversy

Founded in 2021, HuiOne Guarantee initially presented itself as a platform for trading cars and real estate. However, it has been linked to extensive criminal activities, including money laundering, stolen data sales, and even electrified shackles used in human trafficking operations. The marketplace gained notoriety in mid-2023 when Tether froze $29.62 million of its stablecoin connected to the platform.

Elliptic's latest report highlights HuiOne Guarantee's connections to Cambodia’s ruling Hun family and notes its status as a key facilitator of transnational organized crime, with scams targeting victims worldwide. The platform currently boasts over 820,000 users, as reported by the United Nations Office on Drugs and Crime (UNODC).

Rebranding and Evasion Tactics

Following public scrutiny of HuiOne Guarantee and HuiOne Pay—another subsidiary of the HuiOne Group—the marketplace rebranded itself as Haowang Guarantee to distance from its parent organization. Elliptic's analysis revealed that HuiOne Pay received over $150,000 in cryptocurrency between June 2023 and February 2024 from a wallet linked to North Korea’s Lazarus Group, which was involved in crypto thefts from three companies in mid-2023.

Although HuiOne Guarantee has banned transactions involving human trafficking, firearms, and terrorism, Elliptic reports the marketplace continues to thrive, receiving over $4 billion in cryptocurrency in Q4 2024 alone. Comparatively, Hydra, over its six-year existence, handled $5.2 billion in cryptocurrency.

Gambling and Money Laundering

Elliptic found that nearly $6 billion in cryptocurrency has flowed through a Telegram bot associated with HuiOne Guarantee, primarily used for online gambling. Early analysis suggests much of this activity may be linked to money laundering.

Additionally, HuiOne Pay offers services to launder proceeds from scams like romance-baiting, with one vendor reportedly operating from a scam compound in Cambodia’s Golden Fortune Science and Technology Park.

Expanding Operations

In response to increased scrutiny and potential deplatforming, HuiOne Group has diversified its offerings. New products include a U.S. dollar-backed stablecoin called USDH, a decentralized crypto exchange enabling USDH swaps, and ChatMe, a messaging app for Android and iOS. These efforts appear aimed at mitigating the risks posed by reliance on platforms like Tether and Telegram, according to Elliptic co-founder and chief scientist Tom Robinson.