Telegram Bans $35B Scam Networks But Fraud Migrates to Tudou Guarantee

Telegram has taken decisive action by banning two major scam marketplaces—Huione and Xinbi Guarantee—each linked to a $35 billion illicit cryptocurrency network. The move follows a directive from the U.S. Treasury’s FinCEN and reflects the platform’s efforts to align with global anti-fraud initiatives. These marketplaces had long operated as hubs for unregulated crypto trading and scams, drawing increasing scrutiny for their role in enabling financial crime [1]. Telegram stated that the banned groups violated its community guidelines and posed significant risks to users engaging in unsecured crypto transactions [2].

The crackdown, however, has not led to a permanent disruption of the scam ecosystem. Within days of the ban, operations linked to Huione and Xinbi Guarantee were swiftly relocated to a new platform—Tudou Guarantee—demonstrating the adaptability of these fraudulent actors. The rapid migration of illicit activity highlights the challenge regulators face in curbing decentralized and loosely moderated digital marketplaces [3].

This shift also underscores the broader issue of how digital assets are being leveraged in unregulated schemes. As more users turn to crypto for speculative investments, the risk of exposure to fraudulent platforms increases. The U.S. Treasury has expressed concerns that messaging platforms like Telegram could become de facto clearinghouses for illegal financial activity if not adequately regulated [1].

Experts have noted that such enforcement actions often follow a “whack-a-mole” pattern, where crackdowns lead to the emergence of alternative platforms. This pattern mirrors past instances, such as the closure of Silk Road and the rise of Hydra. Similar to these cases, the emergence of Tudou Guarantee illustrates how fraud networks persist by adapting to enforcement measures and finding new channels for operations [3].

Daily transaction volumes on Tudou Guarantee have surged, with some reports indicating a 70x increase in activity. This rapid adoption by users seeking high-risk trading opportunities, often without regard for security or legitimacy, suggests that the core demand for such platforms remains strong [3].

Meanwhile, the broader cryptocurrency market has shown varied responses to recent enforcement actions. For example, ATOM declined by 4%, and ICP fell by 5% amid broader bearish sentiment. These movements, however, are not directly linked to the Telegram bans but reflect wider market dynamics and investor behavior [4].

Telegram’s decision to ban the $35B scam networks is a significant step in the fight against digital fraud. However, the rapid emergence of new platforms like Tudou Guarantee highlights the need for sustained regulatory efforts and greater international collaboration. As the digital finance landscape continues to evolve, the challenge of preventing abuse on decentralized platforms remains a critical focus for both regulators and technology firms.