Crypto Crime Resurgence: The Rapid Return of Banned Channels
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Resurgence of Crypto Crime Networks
In an unexpected twist, two prominent Telegram channels, previously banned in mid-May, have resurfaced under new aliases, according to blockchain intelligence specialists. This development highlights the resilience of certain crypto crime networks, which can deftly maneuver around high-profile shutdowns with ease.
Swift Rebranding and Market Resurgence
On May 13, Telegram terminated the Huione Guarantee and Xinbi Guarantee channels. However, reports from TRM Labs indicate that these networks quickly rejuvenated themselves with new identities. The Huione Group, for instance, continues to manage exclusive “VIP” channels for selected vendors and has even reestablished their cryptocurrency exchange, utilizing their proprietary USDH stablecoin for transactions. This agility indicates that the ban posed only a minor setback.
Impressive Transactional Volumes
Huione was not a minor player. Since 2021, it has facilitated over $80 billion in cryptocurrency transactions, while Xinbi has overseen trades exceeding $8.4 billion in USDT since 2022. These numbers outpace many darknet markets that have since dissolved, including Hydra, a major underground market that handled less volume before its downfall in 2022.
Regulatory Actions and Their Limitations
Despite these activities, US authorities have attempted to clamp down on such networks. Shortly before the ban, the US Financial Crimes Enforcement Network identified Huione Group as a “primary money laundering concern.” Additionally, on May 29, the Treasury’s Office of Foreign Assets Control imposed sanctions on Funnull Technology, a company linked to Huione operations. Despite these efforts, one Huione group’s membership dropped from over 800,000 to around 250,000 but persisted nonetheless. Meanwhile, Xinbi hinted at a relaunch as “Xinbi 2.0,” raising concerns among users about potential scams.
Migration to Alternative Platforms
Following the Telegram bans, several vendors migrated to Tudou Guarantee, a platform reintroduced by Huione in 2024. TRM Labs observed an approximate 30% increase in Tudou’s user base post-ban. Additionally, platforms such as ChatMe and SafeW are gaining traction among operators due to their lack of third-party moderation, providing a haven for illicit trade. This shift demonstrates that these networks do not vanish; they merely relocate.
The Guarantee Market Model Explained
These groups do not directly deal in contraband like drugs or weapons. Instead, they function as escrow services for illicit transactions. Sellers must provide a security deposit, which they forfeit if they defraud buyers. Buyers can procure services or goods such as fake IDs, SIM cards, or surveillance tools, with bots facilitating order management. All payments are conducted through cryptocurrencies, complicating the task of tracing identities and enabling extensive fraud operations.
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