Last month, Telegram implemented a ban on numerous black market accounts that catered to Chinese-language crypto scam services, which collectively facilitated transactions totaling around $35 billion. This crackdown focused on the two most significant platforms, Haowang Guarantee and Xinbi Guarantee, involved in various illicit activities, including money laundering and human trafficking linked to scams in Southeast Asia.
However, shortly after the ban, many of these scam services began rebranding and resurfacing on the platform. A recent report from crypto tracing firm Elliptic reveals that the black market for crypto scams has rebounded with surprising speed. New players, such as Tudou Guarantee—associated with Huione Group, the parent company of Haowang Guarantee—have experienced significant growth, with its user base doubling. As of now, Tudou Guarantee reportedly facilitates around $15 million in crypto transactions daily.
In defending its actions, Telegram stated that while it recognizes the existence of illicit activities, it prefers to evaluate accounts on a case-by-case basis rather than apply blanket bans. The company emphasized its commitment to protecting user privacy and financial autonomy, particularly for users from regions with strict capital controls.
Elliptic has pointed out that these marketplaces primarily serve to enable money laundering and facilitate fraud rather than genuine financial independence. Critics, including former prosecutors and industry experts, have accused Telegram of irresponsibility for allowing these platforms to thrive on its service, suggesting that the company could be held accountable for enabling these illicit activities.
Despite an initial crackdown, marketplaces like Xinbi Guarantee have already re-emerged by creating new accounts without significant repercussions from Telegram. Experts posit that unless there is legal pressure from authorities, the incentive for tech companies like Telegram to be proactive against such abuses remains low.
