China-based Networks on Telegram Dominate the Illicit Crypto Landscape
Telegram has emerged as a key player in global illicit cryptocurrency transactions, evolving into a platform where scams, AI manipulation, and money laundering intermingle seamlessly, surpassing traditional dark web operations.
The Rise of Telegram as a Marketplace
The scale of illicit activity on Telegram is unparalleled. According to data from Elliptic, a platform focused on blockchain intelligence, Huione Guarantee, which has since been renamed to Haowang Guarantee, facilitated approximately $27 billion in transactions from 2021 to 2025. This figure dwarfs the financial activity recorded by every major dark web marketplace to date.
Following a crackdown by Telegram in May that led to the ban of Huione, other markets quickly took its place. Currently, two primary players are at the forefront:
- Tudou Guarantee: conducting about $1.1 billion in transactions monthly
- Xinbi Guarantee: moving approximately $850 million per month
In aggregate, the monthly transaction volume from these platforms now exceeds the total activity recorded by AlphaBay over its entire operational history.
Why Telegram is the Preferred Platform Over the Dark Web
Telegram’s infrastructure offers advantages that traditional dark web markets lack. The platform features publicly accessible channels, functions similar to escrow systems, and provides instantaneous global reach without the need for specialized tools like the Tor browser.
Key features that enhance user experience include:
- Vendor rating and reputation systems
- Dispute resolution mechanisms
- Settlements in stablecoins like USDT
- Swift rebranding capabilities following account bans
This combination effectively turns Telegram into a “dark web without barriers,” making it more accessible for illicit activities.
Cryptocurrency Scams and Their Global Impact
The illicit marketplaces on Telegram do not focus on traditional illegal goods but rather on providing the infrastructure for scams. A notable target is the “pig-butchering” scam—long-term fraud schemes involving romance and fake investment offers—which generates around $10 billion annually from victims in the United States according to federal statistics.
Most of these operations are concentrated in Southeast Asia and frequently exploit trafficked individuals forced to work in scam “compounds.” Services offered by these Telegram markets include:
- Money laundering solutions
- Fraudulent investment schemes
- Stolen personal identities
- Telecommunications and social-engineering tools
This symbiotic relationship sees the scam economy grow in tandem with these illicit markets.
The Role of AI in Enhancing Scams
Artificial intelligence is a significant factor contributing to the efficiency of scams on these networks. Telegram groups actively offer various AI tools, such as:
- Real-time face-swapping software
- Voice-cloning technologies
- Deepfake identity kits
Such tools empower scammers to convincingly impersonate others during video calls, increasing their chances of successful deception. Analysts describe this trend as the industrialization of social engineering, effectively creating an assembly line for fraud.
USDT as the Cornerstone of Illicit Transactions
The majority of transactions within these markets are conducted using Tether (USDT), a stablecoin known for its ability to be frozen, albeit rarely in practice. This reliance on USDT consolidates risk across various schemes, including scams and money laundering.
Despite Telegram’s efforts to eliminate powerful markets, newer ones emerge almost immediately in their place. Ownership and liquidity shift rapidly between these platforms, and as of now, Elliptic monitors around 30 active Chinese-language markets on Telegram that collectively process billions in illicit transactions annually.
As regulations struggle to keep pace, the phenomenon represents a significant shift in how illicit finance is conducted, with public messaging platforms playing a central role in a criminal ecosystem larger than what the traditional dark web has produced. This evolution poses ongoing challenges for law enforcement and regulatory bodies.
