Chinese Telegram Markets Fuel Record-Breaking Crypto Scams - Here’s What You Need to Know

Shadow markets on Telegram are rewriting the rulebook for crypto fraud—and Chinese-language groups are leading the charge.

The Scale Problem

Forget the old phishing emails. These aren't isolated cons but industrialized operations running through encrypted channels. They're not just targeting wallets anymore—they're building entire fake ecosystems, complete with counterfeit tokens and fabricated trading volumes that would make a Wall Street quant blush.

Why Telegram? Why Now?

The platform's architecture creates the perfect storm. End-to-end encryption provides cover, while public channels and bots offer scale. Combine that with crypto's pseudonymous nature and cross-border complexities, and you've got a regulatory nightmare. It's the kind of frictionless crime that keeps traditional financial watchdogs up at night—assuming they even understand the tech.

The New Playbook

Scammers have moved beyond simple wallet drains. Now they're launching full-scale 'pump-and-dump' schemes through coordinated groups, creating fake celebrity endorsements, and even cloning legitimate projects. The sophistication is alarming—some operations mirror legitimate marketing campaigns so closely you'd need a blockchain forensics team to spot the difference.

What This Means for Crypto

This isn't just bad PR. It's a direct threat to adoption. Every successful scam erodes trust in the entire ecosystem, giving ammunition to regulators who'd rather ban than understand. The industry's 'move fast and break things' mentality works great for innovation—less so when what's breaking is people's life savings.

The Bottom Line

Telegram's crypto black markets represent the dark side of decentralization—unchecked, scalable, and increasingly professionalized. While the technology promises to cut out middlemen, it turns out it's equally good at cutting out consumer protections. The solution will require something crypto purists hate even more than banks: actual oversight.

TLDR

• Telegram’s Chinese markets process billions in illicit crypto, outpacing dark web markets.
• AI tools like face-swapping and voice cloning supercharge Telegram’s scam economy.
• Tether (USDT) is central to transactions, making Telegram scams operate more efficiently.
• Telegram markets, banned and rebranded, continue to thrive with global reach and low friction.

Telegram has become the dominant platform for illicit crypto activity, especially through Chinese-language markets. These networks have grown to surpass even the largest dark web markets in scale and impact. A significant transformation has taken place, where Telegram now facilitates an organized ecosystem that combines fraud, money laundering, and AI-driven deception.

According to WIRED, a Chinese-language crypto black-market ecosystem on Telegram has reached a record scale. Elliptic estimates that platforms such as “Tudou Guarantee” and “New Coin Guarantee” facilitate nearly $2 billion per month in money-laundering and scam-related…

— Wu Blockchain (@WuBlockchain) December 23, 2025

Between 2021 and 2025, the Huione Guarantee market processed $27 billion, a sum that exceeds the combined activity of historic dark web markets. This has led to Telegram replacing the dark web as the main hub for illicit crypto activity, particularly due to its user-friendly design and global reach.

The Power of Telegram’s Public Channels and USDT Transactions

One of the key factors driving the success of these Chinese-language Telegram markets is the platform’s structure. Telegram’s public channels make it easier to reach a global audience without the need for special software like Tor, which is required for accessing dark web sites. Additionally, Telegram’s escrow systems and vendor reputation mechanisms recreate many of the dark web’s trusted features, enabling easier interactions.

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— Agentic Open Economy (@Aoe_base) December 23, 2025

Transactions in these markets almost exclusively use Tether (USDT), a centralized stablecoin. Unlike decentralized cryptocurrencies, USDT can be frozen or tracked, but its ability to operate across borders and provide stability has made it the preferred medium for illicit transactions. Its centralized nature also simplifies transactions for both fraudsters and victims, despite the risks involved.

Telegram’s Role in Fueling the Global Scam Economy

The Chinese-language markets on Telegram are heavily involved in the “pig-butchering” scam industry, which generates billions annually. These scams, often involving long-term romance or fake investment schemes, have a significant presence in Southeast Asia, where operations are frequently run from organized compounds. These markets provide the necessary infrastructure for scammers, offering tools such as fake investment platforms, identity theft services, and money-laundering solutions.

In addition to these traditional scam methods, Telegram groups are also selling advanced AI tools, including face-swapping and voice-cloning software. These tools allow scammers to impersonate real people with unprecedented ease, greatly increasing the effectiveness of their scams. As one analyst noted, these AI-driven tactics represent the “industrialization of social engineering,” where scams are no longer isolated incidents but are now efficient, large-scale operations.

Telegram’s Market Resilience Despite Bans

Telegram has repeatedly banned large illicit crypto markets like Huione Guarantee, but the nature of the platform means that these markets quickly reappear. When one market is shut down, new markets with similar infrastructure and liquidity emerge almost immediately. This ability to adapt and reorganize quickly has made Telegram an enduring hub for these operations.

At present, over 30 Chinese-language Telegram markets are tracked, collectively moving tens of billions of dollars in illicit crypto each year. Despite enforcement efforts from various authorities, these markets continue to thrive, operating with little disruption to their global reach.