Digital crime markets have dramatically shifted from obscure darknet sites to more accessible platforms like Telegram. In early 2025, reports revealed that Telegram hosts massive Mandarin-speaking crypto fraud markets driving global scams.
These markets manage illegal transactions worth nearly $2 billion monthly, offering services like money laundering, stolen personal data sales, fake investment sites, and even AI-powered deepfake technology. They also facilitate darker crimes, including human trafficking and prostitution.
Telegram’s Role in the Crypto Black Market
Although Telegram took action by blocking two major illegal crypto markets early this year, new platforms quickly replaced them. Tudou Guarantee and Xinbi Guarantee surged in popularity and now dominate the landscape. Their combined monthly transaction volume reaches approximately $1.95 billion, indicating a thriving illicit digital ecosystem.
Elliptic, a firm specializing in tracking digital assets, found about 30 similar crypto markets operating on Telegram, collectively handling tens of billions of dollars annually. Their findings show that these markets have outgrown historic dark web giants such as Silk Road, AlphaBay, and Hydra. For comparison:
- AlphaBay processed over $1 billion in two and a half years.
- Russian market Hydra recorded around $5 billion over seven years.
- Huione Guarantee on Telegram processed roughly $27 billion from 2021 to 2025.
This comparison highlights the sheer scale of Telegram-based illicit crypto trade, which experts call the largest digital illicit market ever observed.
“Pig Butchering” Scams and Human Exploitation
A major component driving these markets is the global “pig butchering” scam. This complex fraud blends romance scams with fake crypto investments to emotionally manipulate victims and drain their assets. Southeast Asia appears to be a key operational hub, with thousands coerced into working as scam operators under human trafficking schemes.
The FBI estimates that pig butchering scams alone cause losses of $10 billion annually in the United States. As these scams grow, supporting services on Telegram like Tudou Guarantee provide laundering and operational channels.
Challenges in Enforcement and Platform Responsibility
While Telegram claims limited intervention and justifies user presence for benign reasons, cybersecurity analysts reject this. Elliptic and former prosecutors warn that most activity on these illegal markets is criminal in nature, including blatant advertisements for child sexual exploitation.
Stablecoin Tether is reportedly the main currency used in these scams. Despite its centralized capacity to freeze illicit funds, it rarely acts on these large crypto flows. This inactivity contributes to an environment where fraudsters operate with impunity.
Researchers from Harvard highlight that without coordinated international legal pressure, the crypto fraud industry will continue expanding unchecked. Current global responses lag far behind the scale of damage caused by these scams.
Key Data from Elliptic’s Report
| Market Platform | Monthly Transaction Volume ($ Billion) | Operational Period | Main Activities |
|---|---|---|---|
| Tudou Guarantee | 1.1 | 2025–Present | Money laundering, fake investments, data trade |
| Xinbi Guarantee | 0.85 | 2025–Present | Similar illicit services post-block and reactivation |
| Huione Guarantee | – | 2021–2025 (blocked in May 2025) | Large-scale laundering associated with US FinCEN |
These figures emphasize how Telegram’s ecosystem is central to enabling large-scale criminal operations in crypto markets.
The Road Ahead for Crypto Crime Prevention
The evolving use of popular messaging apps for illegal crypto trade illustrates shifting dynamics in digital crime. Transparency and enforcement challenges grow as scammers adopt resilient networks and language-specific communities. Without stronger collaboration between platforms, governments, and law enforcement globally, this crypto crime market will likely continue to expand.
Efforts to curb crypto fraud must prioritize cutting off transaction channels and exposing human exploitation behind these scams. Only through coordinated, proactive international action can the spread of these darknet-like markets on mainstream platforms be effectively addressed.
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