Taking down cryptoasset-enabled money laundering platforms is not enough since criminals simply fragment and rebrand, blockchain analysts claim, as law enforcement celebrates the takedown of the Cambodia-based Huione Group.
Earlier in May, Huione announced its shutdown as Telegram removed it along with another Asian-run black market from its platform.
However, according to blockchain analysis company Chainalysis, while the Huione Group takedown may shift some traffic, scramble broker relationships, or inspire short-term caution, the structural enablers of crypto crime remain intact.
"Guarantee platforms are functionally redundant — vendors and brokers operate across multiple services. Consequently, rather than a full shutdown, Huione Group is more likely to fragment or rebrand," the analysts said, suggesting a ramp-up in risk monitoring efforts.
Previous examples of similar darknet marketplace takedowns are similar. After law enforcement targeted another major darknet marketplace, Hydra, or broker networks, it only led to the dispersion of these illicit services, not their total disappearance.
Also, as Chainalysis pointed out, since Telegram removed channels of Xinbi, another Chinese-language marketplace for cyber fraudsters in Southeast Asia, it has posted new addresses and Telegram contact points.
Meanwhile, according to the analysts, marketplaces such as Huione are likely designed for redundancy, while vendors and brokers operate across multiple platforms, diversifying their risks of being shut down.
"From the perspective of these operators, the guarantee function is what matters most. Their goal is to facilitate trusted transactions brokered by a neutral third party, whether that occurs via a bot, an agent, or a Telegram admin," Chainalysis said.
However, while criminals favor Telegram due to its permissionlessness, it has its limits, as shown by the example of the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). FinCEN put pressure on Telegram by severing Huione Group’s access to the U.S. financial system, stating that Huione Group facilitated the laundering of at least $4 billion in illicit funds between 2021 and January 2025.
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