Telegram’s Crackdown on Crypto Scam Networks Faded Quickly

According to an article in Wired, Telegram recently took decisive action against two massive Chinese-language black markets that facilitate crypto scam networks. The messaging platform attempted to dismantle a criminal ecosystem responsible for billions in illicit transactions by banning major groups, Haowang Guarantee, and Xinbi Guarantee.

However, these efforts appear to have only temporarily disrupted the scam economy, which has quickly reconstituted itself on Telegram, with little resistance from the platform.

The black markets targeted by Telegram had supported as much as $35 billion in transactions tied to investment scams, money laundering, and human trafficking across Southeast Asia.

Operating largely through the use of forced labor in scam compounds, these markets offered tools such as stolen data, scam infrastructure, and even explicit services.

Haowang and Xinbi were the central players in this underground industry until their sudden ban in May 2025. Telegram acted in response to public pressure and mounting regulatory risk, particularly the red flag raised by the US Treasury regarding the Huione Group, Haowang’s parent company. The Treasury viewed Huione as a money laundering threat.

Despite Telegram’s short-lived enforcement, new and rebranded black markets, including Tudou Guarantee, partially owned by Huione, rapidly filled the vacuum. Tudou is now handling $15 million in daily crypto transactions and hosting nearly 300,000 users, rivaling its predecessor’s scale.

Meanwhile, Xinbi Guarantee has quietly re-emerged with no further action taken. Telegram defends its lax enforcement by citing user privacy and financial freedom, while critics argue the platform is enabling organized crime.

Attorneys who make the effort to monitor this rapidly changing situation could gain critical insights into platform liability, regulatory enforcement gaps, and the resilience of transnational crypto scam networks. Their tech clients should monitor how jurisdictional responsibility is allocated for the platform, especially in light of potential increased US government pressure.