Illicit Crypto Activity: Telegram’s Decisive Crackdown Escalates War on $35B Scam Networks

Key Points

1. Telegram banned Huione and Xinbi Guarantee, entities linked to $35 billion in illicit USDT trades, under pressure from U.S. authorities.

2. The U.S. Treasury Department had previously labeled Huione as a significant financial threat, highlighting the role of regulatory pressure in these bans.

3. Despite the bans, Huione's ecosystem (including Huione Pay and USDH) remained active, and affiliate Tudou Guarantee saw a 70x increase in inflows, showing the adaptability of illicit networks.

4. Xinbi Guarantee rebounded with a 90% volume jump after initial disruption, underscoring the persistent challenges in combating such activities.

5. U.S. authorities play a crucial role in disrupting illicit financial networks through sanctions, AML, and CTF regulations, setting a global precedent for regulatory action.