Telegram Shuts Down $35 Billion Black-Market Networks

Telegram has taken decisive action by shutting down thousands of accounts associated with two extensive black-market networks, Xinbi Guarantee and Haowang Guarantee, effectively halting their operations. These networks, according to blockchain firm Elliptic, facilitated over $35 billion in stablecoin transactions through Telegram-based marketplaces.

Despite the crackdown, the operators of these illicit marketplaces are not backing down. Tom Robinson, co-founder of Elliptic, stated that these platforms are too profitable to be abandoned altogether. As a result, the operators are attempting to revive their operations on the social messaging application.

On May 13, Haowang Guarantee confirmed it would cease operations after its NFTs, groups, and channels were removed from Telegram. Elliptic described the platform as a digital bazaar for illicit services, offering access to stolen data and money laundering services, primarily catering to Southeast Asian clients, including crypto scammers. The market allegedly processed over $27 billion in stablecoin transactions, making it the most significant illicit crypto marketplace. USDH, a dollar-backed stablecoin linked to the Huione Group, was a key facilitator of its transactions.

Huione, a Cambodian financial firm, is accused of using its crypto products, including Huione Pay and Huione Crypto, to sidestep global sanctions and regulatory checks. As a result, US authorities have moved to block Huione Group from the American financial system. Earlier this month, the Treasury’s Financial Crimes Enforcement Network (FinCEN) described the entity as a money laundering operation that processed over $4 billion in illegal funds, some of which were stolen by North Korean hackers. However, the Huione operators appear focused on continuing their business despite Haowang’s exit. Robinson noted that the illicit marketplace team has urged users to migrate to Tudou Guarantee, another platform with apparent ties to Huione.

Similarly, Telegram dismantled Xinbi Guarantee, a secondary but equally notorious platform operating via the messaging application. According to Elliptic, the illicit marketplace offered money laundering services and more extreme offerings such as intimidation services and sex trafficking. Xinbi allegedly handled $8.4 billion in USDT, with links to North Korea also identified. Elliptic pointed out that what sets Xinbi apart is its claim of legitimacy through incorporation under Xinbi Co. Ltd in Colorado. However, despite the reported shutdown, Xinbi’s team appears to be regrouping. Robinson stated, “Xinbi Guarantee are trying to relaunch as “Xinbi 2.0″ – it remains to be seen whether Telegram will pursue them further.”