Telegram Bans Major Scam Marketplaces Amid Surge in Illicit Crypto Activity
Telegram has banned major illicit marketplaces, Huione Guarantee and Xinbi Guarantee, which processed over $35 billion in USDT transactions. This action followed an investigation by Elliptic that revealed the scale of Huione's operations in fraud and money laundering.
Key points include:
- The ban targeted escrow and laundering services used by cybercriminals.
- Despite the crackdown, overall activity persisted, as users migrated to Tudou Guarantee, increasing its daily inflows by 70 times.
- Huione Guarantee experienced a 50% drop in volume, while Xinbi Guarantee rebounded with a 90% surge shortly after reappearing on Telegram.
- U.S. regulators intensified actions against Huione Group, linking it to at least $4 billion in illicit activities and imposing sanctions on related entities.
Huione Pay continues to operate, alongside a crypto exchange and stablecoin USDH, aimed at circumventing restrictions on third-party tokens.