Telegram just wiped out $35B Chinese cybercrime markets
What's the story
Telegram has managed to take down two of the largest illicit online marketplaces, Xinbi Guarantee and Huione Guarantee, which have been active since 2021. The Chinese-language platforms have reportedly made more than $35 billion since 2021 by serving cybercriminals and scammers. As per Blockchain research firm Elliptic, these platforms were even more profitable than Silk Road, an illegal drug marketplace taken down by the FBI in 2013. At the time, Silk Road was valued at around $3.4 billion.
Market disruption
Huione Guarantee will cease operations
Huione Guarantee has confirmed it will cease all operations after being removed from Telegram. The shutdown of these markets is likely to severely hit online fraudsters, according to Elliptic. The platforms were key sources for stolen data, money laundering services, and telecom infrastructure. Telegram's action against these platforms coincides with the US Treasury Department's recent move to block Huione Group from the US financial system over money laundering concerns, although a direct link between the two actions is not confirmed.
Criminal allegations
Huione Group's alleged involvement in money laundering
Huione Group, which owns Huione Guarantee, has been accused by the US Treasury of supporting "criminal syndicates who have stolen billions of dollars from Americans." The group is also suspected of laundering at least $37 million in cryptocurrency from cyber heists by North Korea and $36 million from so-called 'pig butchering' scams. These allegations have raised significant concerns about the group's activities, including their presence on platforms like Telegram.
Action taken
Telegram's crackdown on black markets
Telegram's move to take down these marketplaces may not be directly related to the US Treasury Department's recent concerns. Wired reported that the action came after an investigation into the "Internet's biggest black market," after Telegram banned thousands of accounts used for crypto-scam money laundering. Wired noted Huione Guarantee operated in plain sight on Telegram for years, but was only recently discovered by the platform.
Official statement
Telegram's response to criminal activities
A spokesperson for Telegram told Reuters that "criminal activities like scamming or money laundering are forbidden by Telegram's terms of service and are always removed whenever discovered." This statement highlights the platform's commitment to keeping a safe and secure environment for its billion users. The removal of these black markets comes as a major step in the fight against online fraud and protecting user data.