Inside the Crypto Laundering Networks of Gambling Syndicates

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

Online gambling platforms linked to sanctioned guarantee networks have processed over 414 million USDT in revenue in less than two months, with millions flowing directly to 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 Keep Operating After Huione-Linked Shutdowns

According to Bitrace’s investigation, 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 operations connected to the Huione and Tudou Guarantee platforms.

These Telegram-based guarantee markets were designed to facilitate transactions for goods and services but evolved into hubs for illicit activity, including scam operations and money laundering.

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

While Huionepay and Tudou Guarantee have already shut down, Bitrace pointed out that gambling platforms that depended on their services are still running and processing large volumes of crypto. The firm said these gambling-related entities received a combined 414 million USDT during a 53-day period, mainly through the Telegram-based payment tools.

Multiple intelligence sources cited by Bitrace linked Huione Telegram Wallet, Wangbo Wallet, and HWZF to fund settlement for gambling operations connected to Huione, Haowang, and Tudou Guarantee. The firm said Wangbo Wallet and Huionepay appear to share the same software backend, meaning user funds are pooled rather than kept separate.

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Despite repeated warnings from payment providers advising users not to send funds directly to centralized exchanges, Bitrace tracked around 9 million USDT flowing straight into platforms such as Binance, OKX, and HTX during the same 53-day window. The firm said these transfers risk triggering compliance reviews, but are still moving regardless.

Telegram Markets and Exchanges Part of the Same Pipeline

The findings follow years of scrutiny on Huione Group, which U.S. authorities labeled a “primary money laundering concern” in October 2025 after a joint action by OFAC, FinCEN, and UK agencies. Prosecutors also unsealed charges and a $15 billion civil forfeiture case tied to Huione-linked operations.

Huione Guarantee, later rebranded as Haowang Guarantee, processed more than $24 billion in transactions before its shutdown in May 2025. After Telegram removed thousands of channels, vendors migrated to Tudou Guarantee, which absorbed much of the activity.

Investigations by Elliptic and the International Consortium of Investigative Journalists (ICIJ) show that these marketplaces support scam groups, money launderers, and online gambling operators using USDT for settlement. Even after sanctions, Huione-linked entities sent hundreds of millions of dollars through major exchanges between mid-2024 and mid-2025, ICIJ reported in November 2025.

Bitrace’s latest data suggests the same model remains active. Wallet branding changes, shared infrastructure, and Telegram-based tools allow gambling syndicates to keep collecting revenue while limiting direct exposure.

For exchanges and regulators, the continued flow of funds points to unresolved gaps between marketplace shutdowns, wallet providers, and exchange-level controls.