Telegram-Based Crypto Black Markets Overtake the Dark Web, Amassing Tens of Billions in Illegal Transactions

For years, online black markets for drugs, weapons, and illicit services operated in the shadows of the dark web, relying on Tor and complex anonymity tools. By 2025, that model has largely been replaced. Today, some of the world’s largest crypto black markets operate openly on Telegram, generating historic levels of illegal revenue with little more than messaging channels, stablecoins, and persistent account rebuilding.

According to a recent analysis by blockchain intelligence firm Elliptic, Chinese-language crypto scam marketplaces on Telegram have grown into the largest illicit online markets ever recorded. After a brief decline earlier in 2025 following Telegram’s shutdown of two major markets, activity has surged again. The two dominant platforms, Tudou Guarantee and Xinbi Guarantee, now process nearly $2 billion per month combined. Their services range from crypto money laundering and scam infrastructure sales to more disturbing offerings such as prostitution, surrogacy services, and indicators of child sexual exploitation.

These Telegram-based crypto scam ecosystems primarily support large-scale romance scams and investment fraud, often referred to as “pig-butchering scams.” Many of these operations are linked to compounds in Southeast Asia that rely on trafficked and coerced labor. The FBI estimates that crypto romance and investment scams alone cost victims in the United States roughly $10 billion per year, making them among the most profitable forms of cybercrime globally.

Elliptic notes that these marketplaces have surpassed the scale of historical dark web giants. AlphaBay, once the largest dark web market, processed just over $1 billion in transactions during its peak years. Russia’s Hydra market, active for seven years, handled more than $5 billion. In contrast, the Telegram-based Huione Guarantee ecosystem processed an estimated $27 billion in crypto transactions between 2021 and 2025, making it the largest illegal online market on record.

Even after U.S. authorities flagged Huione Guarantee for money laundering and Telegram shut it down in May, the ecosystem quickly reconstituted. Tudou Guarantee, partly owned by the same operators, now handles approximately $1.1 billion per month, while Xinbi Guarantee processes around $850 million monthly. Elliptic currently tracks around 30 similar Telegram crypto black markets, with total annual transaction volumes reaching into the hundreds of billions of dollars.

Telegram’s response has sparked controversy. In a statement to WIRED, the company suggested it would not pursue broad bans, arguing that some users rely on these channels to bypass capital controls. Critics strongly disagree, emphasizing that the overwhelming majority of activity involves crypto fraud, money laundering, and human trafficking.

Another critical component of these crypto black markets is Tether (USDT), the dominant stablecoin used for laundering funds. Despite its centralized structure and ability to freeze assets, Tether has taken limited action against these large-scale flows. Both Telegram and Tether declined to comment on their roles in these markets.

Experts argue that without coordinated international enforcement and stronger pressure on enabling platforms, Telegram-based crypto black markets will continue to expand. As Elliptic and other analysts warn, the migration from the dark web to mainstream platforms has not reduced crime—it has scaled it to unprecedented levels.