Within the crypto money laundering networks of gambling syndicates

Telegram-based escrow markets evolved into pipelines for gambling, scams, and large-scale cryptocurrency money laundering.

Online gambling platforms linked to sanctioned guarantee networks have processed over USD 414 million in revenue in less than two months, millions of which flowed directly to the major cryptocurrency exchanges.

New data from blockchain intelligence firm Bitrace shows how these operations continue at scale despite recent law enforcement actions against their payment providers.

Gambling platforms remain active after the closure of Huione links

According to Bitrace’s research, a specific trio of crypto wallets, namely Huione Telegram Wallet, Wangbo Wallet and HWZF (referring to both Huionepay and Overseaspay), act as the main settlement tools for gambling activities related to the Huione and Tudou guarantee platforms.

These Telegram-based guarantee marketplaces were designed to facilitate transactions for goods and services, but developed into hubs for illegal activities, including scam operations and money laundering.

Bitrace revealed that online gambling platforms often join the platforms, which act as escrow-like marketplaces on Telegram. Once on board, the gambling sites integrate third-party crypto payment providers via Telegram mini-apps, allowing players to deposit and withdraw funds without directly interacting with exchanges.

Although Huionepay and Tudou Guarantee have already closed, Bitrace pointed out that gambling platforms that relied on their services are still active and handling large amounts of crypto. The company said that these gambling-related entities received a combined USDT414 million in a 53-day period, mainly through the Telegram-based payment instruments.

Multiple intelligence sources cited by Bitrace linked Huione Telegram Wallet, Wangbo Wallet and HWZF to the financing of settlements for gambling operations linked to Huione, Haowang and Tudou Guarantee. The company says Wangbo Wallet and Huionepay appear to share the same software backend, meaning user funds are merged instead of separated.

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Despite repeated warnings from payment providers advising users not to send funds directly to centralized exchanges, Bitrace tracked approximately 9 million USDT flowing directly to platforms such as Binance, OKX and HTX over the same 53-day period. The company said these transfers carry the risk of compliance reviews being conducted, but are still in flux regardless.

Telegram markets and exchanges are part of the same pipeline

The findings follow years of investigation into the Huione Group, which US authorities labeled as a “major money laundering concern” in October 2025 following a joint action by OFAC, FinCEN and British agencies. Prosecutors also unsealed indictments and a $15 billion civil forfeiture order related to Huione-linked operations.

Huione Garantie, later renamed Haowang Garantie, processed more than $24 billion in transactions before closing in May 2025. After Telegram removed thousands of channels, suppliers migrated to Tudou Garantie, which absorbed much of the activity.

Research from Elliptic and the International Consortium of Investigative Journalists (ICIJ) shows that these marketplaces support scam groups, money launderers, and online gambling companies that use USDT for settlement. Even after the sanctions, Huione-affiliated entities sent hundreds of millions of dollars through major exchanges between mid-2024 and mid-2025, ICIJ reported in November 2025.

The latest data from Bitrace suggests that the same model remains active. Changes to Wallet branding, shared infrastructure and Telegram-based tools will allow gambling syndicates to continue collecting revenue while limiting direct exposure.

For exchanges and regulators, the continued flow of money points to unresolved gaps between market closures, wallet providers and exchange-level controls.