Chinese networks use Telegram for illegal operations

Telegram as a new center of the shadow economy

Over the past few years, Telegram has transformed from a private messaging app into a key infrastructure for global shadow markets. According to blockchain analytics companies, Chinese-speaking criminal networks now use Telegram as their primary coordination and transaction platform. Experts estimate that more than $2 billion in illicit transactions pass through Telegram channels every month, a figure that exceeds the turnover of many historical darknet marketplaces.

Researchers note that over 60% of Chinese cybercrime-related crypto transactions in 2024–2025 were linked directly or indirectly to Telegram-based services. This shift marks a structural change in how organized digital crime operates.

New leaders of the illegal market

Investigations have uncovered a full ecosystem of so-called “guarantee” services that act as intermediaries for illegal deals. Platforms such as Tudou Guarantee and Xinbi Guarantee dominate this market, offering escrow services that build trust between criminals.

Their services include:

• Cybercrime tools: stolen databases, phishing kits, deepfake software, scam website templates

• Financial fraud services: fake investment platforms and laundering schemes

• Serious crimes: human trafficking and exploitation networks

The scale is unprecedented. AlphaBay processed around $1 billion during its entire existence, while the Russian darknet market Hydra moved roughly $5 billion over seven years. In contrast, Huione Guarantee alone processed an estimated $27 billion between 2021 and 2025 via Telegram.

Tom Robinson, co-founder of Elliptic, stated that “there has never been a larger illegal crypto ecosystem operating so openly.”

A constant game of cat and mouse

Attempts to shut down these channels have had limited success. When Telegram removed Huione Guarantee in May 2025, Tudou Guarantee appeared almost immediately. Within months, the new platform reached a turnover of $1.1 billion, matching its predecessor. Xinbi Guarantee followed a similar pattern, relaunching after bans and now generating over $850 million per month.

Telegram’s controversial stance

Telegram’s administration has resisted mass bans, arguing that many Chinese users rely on crypto to bypass strict capital controls. Critics counter that data shows the majority of funds are linked to organized crime, not private savings.

The role of USDT and human exploitation

Investigators emphasize that USDT is the primary fuel of this system. Although Tether has the technical ability to freeze wallets, enforcement remains rare. Reports from NGOs indicate that many scam operations rely on forced labor camps in Southeast Asia, adding a human cost to the financial crimes.