Market News

Crypto Rises Again: Telegram's Crackdown on Illicit Markets Fuels New Activity on Rivals

Telegram's recent action to dismantle the Huione Guarantee, the largest dark market in history, has inadvertently energized the criminal landscape within the crypto space.

On May 13, 2025, Telegram banned thousands of channels linked to Huione, which handled over $27 billion in transactions.

However, rival platforms like Tudou Guarantee quickly absorbed this displaced user base, with transaction volumes surging to over 300,000 within weeks of Huione's closure.

Elliptic, a blockchain analytics firm, reported that the illegal marketplace structure continues robustly, revealing that criminal actors migrated swiftly to new platforms.

Despite the ban, many of the original merchants on Huione promptly re-established operations on Tudou, continuing their illicit services.

Other smaller platforms such as Shuangying and Fully Light have also reported significant growth, demonstrating an ability to satisfy the ongoing demand for illicit goods and services.

While Telegram attempted to remove illicit activities, Elliptic's findings underscore the resilience of these criminal marketplaces, which often operate using stablecoins like Tether's USDT.

The ecosystem behind these scams includes not only digital financial crime but also disturbing human trafficking operations across Southeast Asia.

Regulators now face the complex challenge of dismantling these networks while respecting the privacy rights associated with encrypted communication platforms.

As Telegram grapples with increasing scrutiny and regulatory pressure, the battle against cybercrime remains far from over.