USDT’s Dark Market Role Exposed: $27B Illicit Flow Through Telegram Before Shutdown
A recent crackdown on Telegram-based platform Haowang Guarantee has uncovered $27 billion in illicit USDT transactions, highlighting the dual role of encryption in both protecting and enabling criminal activities. The platform, identified as the world’s largest dark marketplace, facilitated funds to Southeast Asian fraud rings using Huione Group’s USDH stablecoin to evade sanctions. Despite the shutdown on May 13, 2025, dark markets continue to persist, raising concerns about the future of cryptocurrency regulation and the role of stablecoins like USDT in illicit finance.
Telegram Crackdown Halts $27B Haowang Guarantee – Dark Markets Persist
Telegram’s encryption proved both a shield and a spear for criminal enterprises, enabling Haowang Guarantee to process $27 billion in illicit USDT transactions before its May 13 shutdown. Blockchain analytics firm Elliptic identified the platform as the world’s largest dark marketplace, funneling funds to Southeast Asian fraud rings through Huione Group’s sanction-evading USDH stablecoin.
Despite Telegram’s mass account suspensions, over 30 similar black markets continue operating. The crackdown exposes crypto’s persistent duality: privacy features that empower legitimate users also enable sprawling underground economies.
World Liberty Fi Acquires EOS Tokens in $2.99M Deal Amid Rebranding Plans
World Liberty Fi, a crypto fund associated with Trump, has made its first acquisition of EOS tokens, purchasing $2.99 million worth at $0.82 per token. The move, though a small portion of the fund’s portfolio, could signal an endorsement for the project as EOS prepares to rebrand under a new ticker, Vaulta.
The transaction was executed via PancakeSwap on the BNB Smart Chain, meaning the fund holds the BSC version of EOS rather than the mainnet asset. Following the purchase, EOS traded between $0.80 and $0.84 across exchanges, with low volumes and volatility influencing price action.
The acquisition highlights growing institutional interest in legacy blockchain projects, even as they undergo significant transitions. Market observers will watch whether World Liberty Fi migrates its holdings to the rebranded asset once the transition is complete.
How USDT’s Rising Supply, Falling Dominance Could Fuel Next Crypto Surge
Tether’s market capitalization has surged to a record $151 billion, with $2.5 billion USDT issued in May alone. This marks a $13 billion increase since January, reflecting nearly 10% growth year-to-date. Analyst Axel Adler Jr notes $6 billion in fresh USDT liquidity entered markets over the past 20 days.
The declining USDT Dominance ratio suggests capital rotation into risk assets may accelerate. Such on-chain dynamics historically precede altcoin rallies, as stablecoin liquidity acts as dry powder for crypto investments.
