In May, Telegram banned two of the largest Chinese-language black markets for crypto scams—Haowang Guarantee and Xinbi Guarantee. These marketplaces were infamous for facilitating money laundering, selling stolen data, and enabling investment scams tied to forced labor compounds in Southeast Asia. Telegram’s purge removed hundreds of thousands of users in one sweep, but that victory was short-lived.
According to crypto tracing firm Elliptic, Telegram’s enforcement was more of a pause than a permanent fix. The scam markets simply rebranded, reopened under new names, and resumed operations. Within weeks, new groups like Tudou Guarantee rose to fill the void, serving the same dark purposes.
Forced Labor and Dirty Crypto
Elliptic’s report sheds light on how these groups operate: scam factories across Cambodia, Myanmar, and Laos exploit tens of thousands of trafficked individuals. These victims are forced to carry out online frauds, often targeting Westerners with fake investment pitches, romance scams, or crypto frauds. Telegram’s role? Hosting, enabling, and—after its initial purge—watching.
Before the May takedown, Haowang and Xinbi handled over $35 billion in transactions. After their removal, Tudou Guarantee surged. Now with nearly 289,000 users, it facilitates around $15 million a day in crypto scams, nearly matching Haowang’s old numbers. Telegram has reportedly taken no action against Tudou or many other new channels identified by Elliptic.
Telegram’s Response and Its Limits
Telegram insists it bans accounts when illegal activity is proven. In a statement to WIRED, the company said it removes communities that break its terms, especially those linked to scams or laundering. However, Telegram defended its cautious stance on broad bans, citing the need to protect “financial autonomy” for users in authoritarian regimes, particularly in China.
Critics disagree. Elliptic and others argue that Telegram’s reluctance to act empowers global crime. The company’s inaction, they say, enables platforms like Tudou Guarantee to rebuild and expand. With new scam services including fake websites, stolen data, and even offers of prostitution (including alleged minors), critics call it “Craigslist for crypto criminals.”
Global Implications and the Fight Ahead
The situation underscores a global dilemma: what responsibility do tech platforms have for criminal activity on their systems? U.S. authorities have labeled parent company Huione Group (linked to multiple scam markets) a “primary money laundering concern.” Yet Telegram’s mixed response shows enforcement remains inconsistent and slow.
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Legal experts say that unless law enforcement brings specific cases to Telegram, the platform has little incentive to act proactively. As Harvard’s Jacob Sims notes, Telegram may not act again unless government pressure increases. And as crypto scam networks continue evolving, experts warn that passive oversight won’t stop them—they’ll simply adapt, rebrand, and scam again.