Telegram Takes Down Huione: The $27 Billion Crypto Scam Empire Crumbles

Another day, another crypto scam bites the dust—but this one’s a whopper.

Telegram just pulled the plug on Huione, a $27 billion fraud operation that turned the messaging app into its personal playground. The takedown sends a clear message: even in the Wild West of crypto, lawbreakers can’t hide forever.

How it worked: Scammers exploited Telegram’s encrypted channels to run a sprawling Ponzi scheme, promising moon-shot returns to unsuspecting investors. Spoiler: those returns were as real as a ‘stablecoin’ backed by memes.

Why it matters: While regulators fumble with paperwork, private platforms are stepping up enforcement. Telegram’s move proves decentralized tech can police itself—no bureaucrats required.

The punchline? Huione’s collapse leaves behind a trail of wreckage… and a fresh batch of bagholders learning crypto’s oldest lesson: if it sounds too good to be true, it’s probably running on Telegram.

• In May 2025, Telegram carried out one of the largest crackdowns on crypto fraud by disabling Huione’s mediums of money laundering.
• Before the Telegram shutdown, Huione had managed to acquire a 30% stake in Tudou Guarantee, allowing for a smooth migration of users. 

Crypto scam empire Huione was dismantled by Telegram in what appears to be one of the largest crackdowns on cryptocurrency fraud this year. Telegram reportedly shut down channels through which the scheme operated.

However, this move did not completely put an end to the platform’s operations, as rival messaging apps quickly absorbed the ‘displaced’ criminal user base and helped users migrate to other platforms. The whole situation has caused many in the crypto space to wonder about the role different platforms play in fostering and combating crypto crimes.

The Crypto Scam Operations Continue Despite Telegram Ban

Earlier in May, Huione announced the end of its operations on Telegram. According to details, Telegram ended the platform’s main online hub for Chinese-speaking crypto fraud operations. It also removed almost all the individuals linked to the market used by sellers to carry out money laundering. 

However, before the platform operations were shut down on Telegram, it was recorded that the group secured a 30% stake in Tudou Guarantee in December 2024. 

This smart MOVE allowed for a seamless transfer of the members. Due to this move, activities on Tudou jumped, reaching over 300,000 users by June 15. 

The transfer was almost seamless as former Huione sellers quickly continued the same offerings, including identity theft, financial cover-ups, and tools for online romance scams aimed at Westerners. As Tudou gained ground, other smaller sites also started to see similar growth.

A report from Elliptic shows that Shuangying jumped from 40,000 to 110,000 user activity, while Fully Light grew from 20,000 to over 80,000.

Even though Telegram has tried to help by taking down thousands of communication and operation channels, the report still has it that Huione’s main system for handling crypto fraud is still operational.