After Telegram Bans $35B Scam Bazaar, Dark Crypto Markets Boom Like Wall Street on Stimulus
Telegram slams the door on a $35 billion shadow economy—only to watch the hydra sprout three new heads.
When platforms crack down, illicit crypto traders don't quit. They pivot.
The 'whack-a-mole' effect hits hard
Scammers migrated to encrypted alternatives within hours of Telegram's purge—proving decentralized tech laughs at centralized takedowns. Trading volumes on darknet forums surged 217% post-ban, because nothing fuels demand like artificial scarcity (ask your local VC).
Regulators scramble as crypto's underworld evolves
Authorities face a losing battle against peer-to-peer markets and privacy coins. Meanwhile, traditional finance still can't tell a wallet from a Venmo account—but sure, keep 'protecting' us with those 90s-era surveillance tactics.
The lesson? For every banned marketplace, two more emerge—funded by the same greedy speculators who'll later cry 'fraud' when their shady bets implode. The circle of crypto life continues.
U.S. crackdown increases
Meanwhile, U.S. regulators ramped up the offense on Huione.
In early May, FinCEN issued a proposed Section 311 rule designating Huione Group a financial institution of primary money‑laundering concern. The rule cited at least $4 billion in illicit proceeds laundered from cyber heists, pig‑butchering fraud, and crypto scams between August 2021 and January 2025.
U.S. authorities escalated enforcement, naming Huione Group a money-laundering threat and sanctioning affiliated wallets and vendors. Later that month, OFAC imposed sanctions on Funnull Technology and two crypto wallets linked to Huione Group for facilitating pig‑butchering scams resulting in over $200 million in losses.
Despite the dismantling of its most visible back‑end, Huione Pay, the Group’s Cambodia‑based payment service provider, continues operations. The Huione umbrella also includes a crypto exchange and its own stablecoin, USDH, launched in an effort to evade restrictions tied to third‑party tokens like USDT.
