Online gambling platforms linked to sanctioned networks have amassed over 414 million USDT in revenue within a short period, transferring substantial amounts to major cryptocurrency exchanges.

Recent findings from Bitrace, a blockchain intelligence firm, highlight the persistent operations of these gambling entities, despite law enforcement measures affecting their payment systems.

Continued Operations After Shutdowns

After the shutdown of platforms like Huione Guarantee, investigations reveal that gambling sites have adapted, maintaining operations through a network of crypto wallets.

Identified wallets include Huione Telegram Wallet, Wangbo Wallet, and HWZF, which function as key payment processors for gambling relating to Huione and its affiliates.

Originally designed for legitimate transactions, these Telegram markets have transformed into hubs for illicit activities, including scams and money laundering.

Bitrace has observed that these gambling operations, initially relying on now-defunct services, continue to thrive and conduct high volumes of crypto transactions. Over 53 days, they received 414 million USDT, largely facilitated by specific payment tools on Telegram.

Insights into the Gambling Networks

Despite closures of platforms like Huionepay, gambling operations using these services persist, highlighting the adaptability of these networks. The identified wallets play crucial roles in consolidating user funds, increasing the risks of laundering operations.

Research indicates that gambling sites often join Telegram-based escrow marketplaces, integrating third-party crypto payment facilitators to allow seamless deposits and withdrawals outside traditional exchanges.

Regulatory Challenges

The prolonged activity of these gambling syndicates raises concerns for regulators and exchanges alike, emphasizing the need for tighter controls on marketplace transactions. With funds continually flowing, users still engage with major exchanges, risking compliance repercussions.

In conclusion, the crypto landscape’s resilience among illicit operations underscores significant gaps in regulation and enforcement, necessitating a comprehensive approach to combat these evolving threats.