Telegram Bans $35B Scam Marketplace. Only to See Illicit Crypto Trades Surge Elsewhere

In a sweeping crackdown on the so‑called Telegram marketplace ecosystem, the messaging giant has banned Huione Guarantee (also known as Haowang Guarantee) and Xinbi Guarantee, disrupting marketplaces that collectively processed more than $35 billion in USDT‑denominated transactions, according to a new report by TRM Labs.

These forums offered escrow and laundering services to cybercriminals and scam syndicates, including those operating pig‑butchering schemes.

Telegram’s move came in response to blockchain analytics firm Elliptic’s investigation, which exposed the massive scale of Huione Guarantee: a Chinese‑language marketplace that had operated for years, facilitating fraud tools, stolen data, and illicit escrow services.

Yet while the ban shuttered these major platforms and deleted thousands of channels and aliases, it did little to stifle overall ecosystem activity.

Instead, according to the TRM Labs report, transaction volume quickly shifted to Tudou Guarantee, a Telegram‑based platform in which Huione Group already held a stake.

Huione Guarantee’s volumes plunged by 50% from their 2024 peak, but Tudou saw a 70-fold increase in daily inflows, signaling a strategic migration of activity. Within days, Tudou’s user base and daily USDT volume neared the levels previously handled by Huione Guarantee, the report said.

Elliptic also identified more than 30 alternative guarantee platforms gaining traction in the wake of the purge, according to the report in May.

Xinbi Guarantee, banned the same day as Huione, rebounded quickly and saw a 90% surge in daily inflows after reappearing on Telegram under the same ID.

U.S. crackdown increases

Meanwhile, U.S. regulators ramped up the offense on Huione.

In early May, FinCEN issued a proposed Section 311 rule designating Huione Group a financial institution of primary money‑laundering concern. The rule cited at least $4 billion in illicit proceeds laundered from cyber heists, pig‑butchering fraud, and crypto scams between August 2021 and January 2025.

U.S. authorities escalated enforcement, naming Huione Group a money-laundering threat and sanctioning affiliated wallets and vendors. Later that month, OFAC imposed sanctions on Funnull Technology and two crypto wallets linked to Huione Group for facilitating pig‑butchering scams resulting in over $200 million in losses.

Despite the dismantling of its most visible back‑end, Huione Pay, the Group’s Cambodia‑based payment service provider, continues operations. The Huione umbrella also includes a crypto exchange and its own stablecoin, USDH, launched in an effort to evade restrictions tied to third‑party tokens like USDT.

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