Telegram takes down $35 billion black-market networks, but illicit operators plan comeback

Telegram has taken down thousands of accounts linked to two massive black-market networks, Xinbi Guarantee and Haowang Guarantee, effectively turning off their operations.

Blockchain firm Elliptic reported these networks facilitated over $35 billion in stablecoin transactions through Telegram-based marketplaces.

Despite the crackdown, the operators of these illicit marketplaces are reportedly not backing down.

Tom Robinson, co-founder of Elliptic, told CryptoSlate that these platforms are too profitable to be abandoned altogether. As such, the operators are trying to revive their operations on the social messaging application.

Haowang shuts down

On May 13, Haowang Guarantee confirmed it would cease operations because its NFTs, groups, and channels were removed from Telegram.

Elliptic stated that the platform functioned as a digital bazaar for illicit services, offering access to stolen data and money laundering services. It mainly catered 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.

Elliptic stated that USDH, a dollar-backed stablecoin linked to the Huione Group, was a key facilitator of its transactions.

Huione is a Cambodian financial firm 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.

Xinbi eyes comeback despite closure

Like Haowang, Telegram also 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 even 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 told CryptoSlate:

“Xinbi Guarantee are trying to relaunch as “Xinbi 2.0″ – it remains to be seen whether Telegram will pursue them further.”

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