Telegram’s Crackdown on Chinese Crypto Scam Markets Proves Ineffective as New Markets Emerge

Telegram recently took action to ban two of the largest Chinese-language black markets involved in crypto scams, which were responsible for billions in fraudulent transactions. The platforms, Haowang Guarantee and Xinbi Guarantee, were hosting services ranging from money laundering to the trafficking of stolen data. However, despite Telegram’s efforts, these markets quickly rebranded and returned with new platforms like Tudou Guarantee, which continues to facilitate similar illicit activities. Elliptic, a crypto tracing firm, highlighted that these new markets are thriving, with Tudou Guarantee already processing millions of dollars daily in illicit transactions. Telegram’s inaction in preventing these markets from rebounding has sparked criticism, with experts arguing that the platform should be more proactive in curbing criminal activities. Telegram, in response, cited a commitment to privacy and financial autonomy for users, especially in China, where citizens often turn to these black markets due to capital controls. Critics, however, maintain that Telegram is enabling crime by hosting these marketplaces, despite its terms of service prohibiting such activities. The persistence of these markets and Telegram’s reluctance to act raises questions about the platform’s responsibility in curbing global crypto scams.