Illicit Crypto Transactions Exceed $40 Billion in 2024
The closure of Haowang Guarantee, once the largest illicit marketplace for crypto scammers, is far from a final blow to crypto crime, according to a report published Monday by blockchain analytics firm Chainalysis. Despite a sweeping crackdown by Telegram after the U.S. Treasury’s FinCEN identified Haowang’s parent, the Cambodian-based Huione Group, as a money laundering operation linked to North Korean cyber actors, the criminal ecosystem has demonstrated high adaptability. Total illicit cryptocurrency activity in 2024 reached at least $40.9 billion, and this figure continues to grow.
Criminal Ecosystem Shows Resilience and Adaptability
Haowang, previously known as Huione Guarantee, was a Telegram-based marketplace offering money laundering services, stolen data, and scam technology without requiring identity verification. Its shutdown was accompanied by the removal of accounts connected to Xinbi Guarantee, the second-largest platform of its kind.
These actions were hailed as progress in disrupting scam networks that had taken root on encrypted messaging platforms. However, Chainalysis warned that the victory is more symbolic than structural.
In its report, Chainalysis said the criminal ecosystem around “guarantee” services has proven highly adaptable.
“These services are likely designed for redundancy, speaking to the resilience of criminals and the lucrative nature of their businesses,” the report noted.
Vendors who once operated on Haowang have already moved to new platforms or split across several smaller marketplaces. The same users, Chainalysis said, quickly adjust to new brokers and communication channels, reducing the impact of isolated takedowns.
“For now, the Huione Group takedown may shift some traffic, scramble broker relationships, or inspire short-term caution,” Chainalysis added, “but the structural enablers of crypto crime unfortunately remain intact.”
Telegram continues to serve as the primary base for these illicit operations due to its ease of access and pseudonymous features. Despite promises of enforcement, the platform has not disclosed whether further crackdowns will follow.
Historical Context and Evolution of Crypto Crime
The phenomenon of “guarantee” services emerged several years ago in response to crypto scammers’ need for reliable infrastructure for their operations. These services offered not only money laundering but also a wide range of services, including the sale of stolen data, phishing technologies, and access to compromised accounts.
Haowang Guarantee became the most prominent of such platforms, attracting thousands of users from different countries. The platform operated as an intermediary guaranteeing the security of transactions between criminals, which allowed for effective coordination of complex fraudulent schemes.
“The crypto crime ecosystem has evolved from scattered individual actions to well-organized networks with a clear division of labor,” explains Kim Grauer, Head of Research at Chainalysis. “Closing individual platforms now is akin to trying to stop a flood by plugging one hole in a dam, while water finds new paths.”
Specialists note that in recent years, such services have become more professional, even offering customer support services and money-back guarantees. This has led to the industrialization of crypto crime, where even technically unprepared criminals can purchase ready-made solutions for fraud.
Rise in Violence and Connection to State-Sponsored Hacking Groups
Of particular concern is the fact that crypto crime goes beyond online exploitation. Criminal groups are using cryptocurrencies to fund and conceal a wider range of crimes—from investment scams and AI-enhanced romance frauds to drug trafficking and even physical violence.
In one alarming case on May 13, 2025, the daughter and grandson of Paymium’s CEO were nearly kidnapped in Paris by masked men. This incident demonstrates how digital crimes can spill over into the real world with dangerous consequences.
Illicit cryptocurrency activity in 2024 reached at least $40.9 billion, according to Chainalysis, and this figure is likely to grow as more criminal-linked wallets are identified.
Hacks alone accounted for $2.2 billion in stolen assets—a 21% increase from the previous year. North Korean-linked groups, including Lazarus and Tradetraitor, were behind over 60% of those thefts, with major incidents like the $300 million hack of Japan’s DMM Bitcoin exchange among their hits.
“We’re observing a worrying trend: crypto crime is becoming increasingly organized and connected to state actors, especially from North Korea,” comments Eric Neumann, a former FBI special agent specializing in cybercrime. “This is no longer just a question of financial losses but also a national security issue for many countries.”
Need for New Approaches to Monitoring and Countermeasures
Chainalysis concluded that while platform removals may draw headlines, lasting progress against crypto scams will depend on more advanced, behavioral-focused monitoring of blockchain transactions.
Rather than solely dismantling platforms, the firm urges efforts to track illicit funds through on-chain movement patterns, where real-time data may expose fraud even when platforms go dark.
“Traditional law enforcement methods focused on shutting down specific sites or arresting individuals prove insufficiently effective in combating the distributed nature of crypto crime,” the report notes. “A transition to monitoring and analyzing behavioral patterns on the blockchain is necessary, which will allow for identifying and suppressing illegal activity regardless of the platforms used.”
Experts emphasize that effectively combating crypto crime requires a combination of several approaches:
- Enhanced blockchain monitoring using AI to identify suspicious transaction patterns
- International cooperation between law enforcement agencies and regulators
- Greater responsibility from platforms like Telegram regarding control over illegal activities
- Educational initiatives to raise user awareness about potential risks
“Fighting crypto crime is a continuous arms race,” concludes the Chainalysis report. “As criminal networks become more sophisticated and adaptive, the methods for detecting and suppressing them must also evolve.”
Of course, this story has a positive side: each shutdown, like Haowang, provides law enforcement with valuable data about the functioning of criminal networks. However, long-term success will require a more fundamental approach oriented toward online behavior and financial flows, not just specific marketplaces.