Telegram Bans $35B Scam Networks Despite Illicit Crypto Surge

Telegram has taken significant action by banning major scam networks Huione Guarantee and Xinbi Guarantee, which were linked to over $35 billion in USDT transactions involving cyber fraud, pig-butchering scams, and money laundering. This crackdown followed investigations and sanctions by U.S. authorities, including the Treasury’s Financial Crimes Enforcement Network (FinCEN) designating Huione Group as a primary money laundering concern and the Office of Foreign Assets Control (OFAC) blacklisting related entities and wallets. Despite the bans and removal of thousands of related channels, illicit activity quickly migrated to alternative platforms such as Tudou Guarantee, which saw a 70-fold increase in transaction volume, and Xinbi Guarantee, which rebounded with a 90% surge, demonstrating the resilience and adaptability of these networks. Blockchain analytics firms Elliptic and TRM Labs uncovered a growing ecosystem of over 30 new platforms offering similar laundering and escrow services, highlighting the ongoing challenges in combating crypto-related financial crimes. Telegram’s actions underscore the critical role messaging platforms play in facilitating these scams and the increasing regulatory pressure on tech companies to enforce stricter controls. However, the persistence of affiliated services like Huione Pay indicates that while enforcement disrupts operations, these illicit networks continue to evolve rather than disappear.