Telegram Cracks Down on $35B Scam Networks Huione and Xinbi Guarantee Amid U.S. Pressure

Telegram has escalated its efforts to combat illicit cryptocurrency activity by banning two major scam networks, Huione and Xinbi Guarantee, which were linked to an estimated $35 billion in fraudulent USDT transactions. The move followed sustained pressure from U.S. authorities, including sanctions from the U.S. Treasury Department against Huione’s associated wallets [1]. This action represents a significant step in the ongoing global fight against crypto-related financial crime, as these networks had long exploited Telegram’s platform for communication and coordination [1].

The immediate impact of the bans was notable. Huione’s transaction volume reportedly dropped by 50% after its Telegram channels were taken down, disrupting a key coordination channel for the network [1]. Similarly, Xinbi Guarantee faced initial operational setbacks. However, the broader ecosystem of these networks demonstrated resilience. For instance, Tudou Guarantee, an affiliate of Huione, experienced a 70x surge in illicit inflows, indicating a rapid migration of activity to alternative channels [1]. Meanwhile, Xinbi Guarantee rebounded with a 90% volume jump, underscoring the adaptability of such networks and the challenges in permanently dismantling them [1].

Telegram’s decision highlights the critical role that messaging platforms play in the operations of illicit crypto activities. While blockchain transactions are public, the coordination, recruitment, and execution of scams often occur on private platforms [1]. This has led to increased scrutiny on tech companies and growing expectations for them to enforce stricter controls and cooperation with law enforcement. The U.S. approach also signals a broader trend of global regulatory bodies taking more assertive stances on crypto crime [1].

Despite the disruption caused by the bans, criminal networks tend to evolve rather than disappear. Huione’s affiliated services, such as Huione Pay and its stablecoin USDH, remained active post-ban, showing that these operations are multi-faceted and not solely dependent on a single platform [1]. This resilience points to the necessity of continuous monitoring and adaptive strategies by platforms, regulators, and technology providers.

The incident also raises questions about the future of combating illicit crypto activity. Experts suggest that proactive monitoring, enhanced international collaboration, and the development of advanced tools—such as AI and machine learning—will be essential in detecting and countering evolving threats [1]. For individual users, the message remains clear: exercising caution, verifying sources, securing assets, and reporting suspicious activity are all vital in preventing exposure to scams and other illicit schemes [1].

As the crypto ecosystem continues to grow, so too does the complexity of the challenges it faces. Telegram’s crackdown on Huione and Xinbi is one battle in a larger, more complex war against financial crime. While the immediate results are promising, the long-term solution will require sustained effort and innovation from all stakeholders involved.

Source: [1] Illicit Crypto Activity: Telegram’s Decisive Crackdown Escalates War on $35B Scam Networks (https://coinmarketcap.com/community/articles/688a3df6d1ef997e0e6650c3/)