Exploring Cryptocurrency Laundering Systems in Betting Rings

Online gambling sites connected to sanctioned guarantee networks have processed over $414 million in Tether (USDT) in less than two months, with substantial amounts going straight to major crypto exchanges, reveals blockchain intelligence firm Bitrace. Despite crackdowns on their payment providers, these platforms continue to operate, using crypto wallets like Huione Telegram Wallet, Wangbo Wallet, and HWZF as primary settlement tools. These wallets are linked to Huione and Tudou Guarantee platforms, which started as transaction facilitators and evolved into centers for illegal activities, including scams and money laundering. Even with the shutdown of Huione and Tudou Guarantee, gambling platforms relying on their services continue to process large crypto volumes. Bitrace's findings highlight unresolved issues between marketplace shutdowns, wallet providers, and exchange-level controls, suggesting the need for enhanced regulation in the space.