Telegram Dark Markets Thrive Despite Huione Ban
By: Eliza Bennet
The recent shutdown of the infamous Huione Guarantee marketplace has led to significant movements in the cryptocurrency-fueled darknet sphere on Telegram. Despite the removal of one of the largest crypto darknet marketplaces, various contenders have rapidly filled the void, according to a comprehensive report by blockchain analysis firm Elliptic. This development follows Telegram's decisive action in May, which led to the banning of thousands of accounts linked to Huione Guarantee and its related illicit activities, disrupting operations that saw billions in USDT being traded in connection with fraud schemes.
Following the shutdown, a notable shift occurred as illicit actors redirected their operations towards other established platforms such as Tudou Guarantee. The marketplace not only doubled its user base but also mirrored the transaction volumes that Huione had experienced before its disappearance. Other smaller market players similarly saw an influx of users as listings proliferated across the burgeoning landscape of dark markets. This trend underscores the adaptive nature of these marketplaces that thrive in the cryptosphere's underbelly.
These Guarantee markets, operating predominantly in Chinese on Telegram, rely heavily on USDT—presumably for its stability and ease of international transactions—using a sophisticated escrow model which provides anonymity to both buyers and sellers engaged in illicit trades. Even as such platforms evolve and expand, comparing and misidentifying the associated financial arms, such as Huione Pay, emphasizes the complexity of tracking these networks. Elliptic’s report further delineates the operational differences between Huione Guarantee and its payment counterpart, confirming that Huione Pay remains active despite the fallout surrounding its connections.
The rapid re-emergence and expansion of these dark marketplaces highlight a critical challenge in regulating and controlling decentralized financial crimes that leverage messaging apps like Telegram. As per the insights from Elliptic, effectively dismantling these operational nodes requires sustained and coordinated interventions by regulatory bodies globally. Nevertheless, the resilience shown by these networks in moving forwards, despite crackdown efforts, reflects a persistent challenge in combating darknet activities within the crypto market, necessitating ongoing vigilance and advanced tracking methodologies.
