Telegram Removes Channels Linked to $35 Billion in Illicit Transactions

Telegram has taken a significant step in combating cybercrime by removing thousands of channels linked to Xinbi and Huione Guarantee, two major Chinese-language marketplaces that have facilitated over $35 billion in illicit transactions. These platforms, operating within Telegram, have been instrumental in coordinating scams and money laundering activities, primarily using the Tether (USDT) stablecoin.

Elliptic, a blockchain analytics firm, identified at least $8.4 billion in USDT flowing through Xinbi since 2022. Huione, with ties to Cambodia’s ruling elite, accounts for at least $27 billion and offers a range of illicit services, including money laundering, fake IDs, stolen personal data, and intimidation-for-hire.

Xinbi Guarantee and Huione Guarantee operate as marketplaces within Telegram, leveraging the platform’s encryption and group-based infrastructure to connect buyers and vendors at scale. These platforms provide a variety of services to cybercriminals, including document forgery, SIM card trafficking, database access, and crypto money laundering.

The services offered by Xinbi and Huione extend beyond simple money laundering. Both platforms are connected to scam compounds across Southeast Asia, where human trafficking victims are forced to carry out online fraud. These compounds, often disguised as legitimate job offers, lure people from across Asia with promises of high-paying roles. Once onsite, victims are held against their will, subjected to abuse, and coerced into executing various scams under constant surveillance.

Telegram’s role in facilitating these activities highlights a shift in illegal operations from the darknet to encrypted messaging apps. The platform’s encryption has made it a preferred tool for criminal networks, particularly in Southeast Asia. According to the United Nations, Telegram generates up to $36.5 billion a year through scams, money laundering, and stolen data sales, often using the USDT stablecoin.

The removal of Xinbi and Huione channels underscores Telegram’s growing involvement in cybercrime investigations. While the platform has taken steps to address these issues, such as removing features like “People Nearby” and updating its FAQ, experts believe more action is needed to prevent Telegram from being used for global crypto crime.

Elliptic now tracks over 30 similar Telegram-based marketplaces, indicating the scale of the problem. The takedown of Xinbi and Huione is more than just a crackdown on crypto-facilitated cybercrime; it exposes how stablecoins and encrypted messaging have fueled a new breed of “dark markets” operating at an industrial scale.