Crypto scam markets on Telegram have rebounded swiftly after the platform shut down the largest illicit marketplace in May, with successor sites handling roughly $27 billion in transactions, according to blockchain analytics firm Elliptic.
The report reveals that Tudou Guarantee quickly replaced Huione Guarantee, which Telegram banned on May 13. Transaction volumes for Huione plummeted to near zero by late May, while Tudou Guarantee surged, exceeding 300,000 transactions by June 15.
Elliptic tracked over 30 active scam markets on Telegram, including Shuangying and Fully Light, which have more than tripled in size. These platforms facilitate the trade of stolen data, money laundering, and other illicit services, often targeting victims with “pig butchering” scams.
Telegram’s efforts involved terminating thousands of accounts linked to these markets, yet the underlying network persists. Notably, the banned Huione Guarantee had acquired a 30% stake in Tudou Guarantee late last year, ensuring operational continuity.
Elliptic emphasizes the need for ongoing and broader removal efforts across Telegram to effectively disrupt these marketplaces that fuel the global crypto scam epidemic.
Decrypt has reached out to Telegram and Tether for comment.