Telegram Dismantles $35 Billion Crypto Black Markets in a Major Crackdown

Telegram has shut down two massive cryptocurrency black markets operating on the platform. These black markets were collectively responsible for illegal transactions that totaled approximately $35 billion. Both black markets facilitated high-volume illegal crypto dealings that primarily worked with Tether (USDT). These markets were operational on Telegram in plain sight and raised concerns over the app’s ability to control criminal activities.

Telegram Shuts Down Black Markets

The messaging giant shut down Xinbi Guarantee and Haowang Guarantee. According to Elliptic, a blockchain security company, Haowang Guarantee alone accounted for approximately $27 billion in illegal transfers. Elliptic worked with Telegram to identify and shut down these two markets. Their extensive research exposed the scale and audacity of these underground marketplaces, forcing Telegram to act decisively.

In a statement made to CNN by Remi Vaughn, a Telegram spokesperson, “This crackdown marks a pivotal moment in curbing illegal crypto exchanges and reinforces Telegram’s commitment to enforcing its policies. Criminal activities like scamming or money laundering are forbidden by Telegram’s terms of service and are always removed whenever discovered.”

Increasing Scrutiny on Communication Applications

This effort by Telegram fosters the need for increasing scrutiny of mainstream communication applications being used as a platform for financial crime. Many industry observers believe that this action by Telegram can serve as a warning to other platforms to remove such black markets on their platforms as well.

The effect of this announcement was immediate on the crypto ecosystem. The shutdown of these markets halted the illegal profit channels and restored some trust within the online crypto community. This may also usher in an era where applications and platforms will start to put stricter regulations in place to facilitate digital currencies.

A cybersecurity analyst at Elliptic said, “While the immediate impact is significant, these types of crackdowns often lead to displacement rather than elimination. We anticipate that illicit operators may try to migrate to other encrypted platforms or evolve their methods to evade detection.”

This decisive action by Telegram is being appreciated by the crypto industry and is being appreciated for setting a strong precedent for the future. The industry is highlighting the role of platform accountability in the fight against financial cybercrime. It also underscores the growing cooperation between private cybersecurity firms and tech companies in tracking and dismantling illicit networks. As regulatory pressures mount globally, industry experts predict a more proactive stance from messaging and social media platforms in addressing illegal activity.