Ethical Hacking News
In a shocking turn of events, Chinese crypto scammers on the messaging platform Telegram have taken over as the largest illicit online marketplace in history. With an estimated $27 billion in annual transactions, these markets are facilitating everything from money laundering to human trafficking. As law enforcement agencies struggle to keep up with this growing industry, it's clear that a coordinated global effort is needed to disrupt these operations once and for all.
The rise of Chinese crypto scammers on public platforms like Telegram has marked a new era in online illicit activities, enabling tens of billions of dollars in illegal transactions every month.Chinese crypto scammers have turned to messaging platforms like Telegram to facilitate their operations, recruiting thousands of human trafficking victims and carrying out complex cybercrimes.The "pig butchering" scam, which uses fake investment opportunities to lure in unsuspecting victims, is a particularly lucrative form of cybercrime that pulls in around $10 billion annually from US victims alone.Telegram's decision not to ban illicit operations on its platform has fueled the growth of these online black markets, with the company arguing that they offer an outlet for Chinese users seeking financial freedom.Cryptocurrency, particularly "stablecoin" Tether, plays a significant role in facilitating these operations through money-laundering transactions and allowing companies to seize or freeze funds at will.A coordinated international effort is needed to combat cybercrime on the same scale as terrorism or drug trafficking, with focused law enforcement pressure necessary to disrupt this lucrative industry.
In a world where technology is constantly evolving and transforming every aspect of our lives, it's no surprise that the darker corners of the internet have also undergone a significant transformation. The rise of black markets on public platforms like Telegram has marked a new era in online illicit activities, with Chinese crypto scammers playing a major role in this shift. According to a recent analysis by the crypto tracing firm Elliptic, these marketplaces have grown to be bigger than ever before, enabling tens of billions of dollars in illegal transactions every month.
The story began on the dark web, where online black markets for drugs, guns, and other contraband first sprang up over a decade ago. These early markets were facilitated by cryptocurrency and anonymity software like Tor, which allowed users to remain anonymous and carry out illicit transactions with relative ease. However, as technology advanced, so too did the sophistication of these operations.
Today, it's no longer necessary to resort to the dark web or use outdated anonymity software to engage in illicit activities online. Instead, Chinese crypto scammers have turned to messaging platforms like Telegram, which offer a relatively open and accessible environment for their operations. These scammers are able to recruit thousands of human trafficking victims, who work from compounds in Southeast Asia to carry out complex cybercrimes.
One of the most significant and lucrative forms of cybercrime is the "pig butchering" scam, where Chinese crypto scammers use fake investment opportunities to lure in unsuspecting victims. This type of scam has become incredibly successful, with some estimates suggesting that it pulls in around $10 billion annually from US victims alone.
The rise of these online black markets on Telegram has also been fueled by the company's decision not to ban several of these illicit operations. Despite reports and warnings from law enforcement agencies, Telegram has chosen not to take decisive action against these markets, arguing that they offer an outlet for Chinese users looking for financial freedom in a world dominated by authoritarian regimes.
However, experts argue that this approach is fundamentally misguided. The vast majority of activity on these platforms is criminal, with scam-related services, prostitution, and human trafficking all being facilitated through these marketplaces. In fact, Elliptic has called one such platform, Huione Guarantee (which rebranded as Haowang Guarantee after its initial ban), the largest illicit online marketplace to have ever operated.
The role of cryptocurrency in facilitating these operations cannot be overstated. The popular "stablecoin" Tether is widely used by these markets for money-laundering transactions, and its centralized structure allows companies like Tether to seize or freeze funds at will. However, this has rarely been done, with the vast majority of money flowing through these platforms without any significant disruption.
The response to this ballooning scam industry "hasn't risen to that level of coordination and urgency yet," says Jacob Sims, a visiting fellow at Harvard's Asia Center who focuses on transnational crime. "And it needs to before we see this thing prioritized at the level that is actually commensurate with the damage it's causing."
In order for meaningful disruption to occur, Sims argues that focused and cooperative international government and law enforcement pressure is necessary. This would involve a global effort to combat cybercrime on the same scale as terrorism or drug trafficking.
The implications of this growing scam industry are far-reaching and significant. As one former prosecutor notes, "They have the ability to shut down a scam economy and the trafficking of human beings. Instead, they're hosting Craigslist for crypto scammers." It's time for companies like Telegram and cryptocurrency platforms to take responsibility for facilitating these operations and to work with law enforcement agencies to disrupt this lucrative industry once and for all.
Related Information:
https://www.ethicalhackingnews.com/articles/The-Largest-Illicit-Online-Marketplace-to-Have-Ever-Operated-How-Chinese-Crypto-Scammers-Are-Taking-Over-Telegram-ehn.shtml
https://www.wired.com/story/expired-tired-wired-chinese-scammer-crypto-markets/
Published: Wed Dec 24 13:56:08 2025 by llama3.2 3B Q4_K_M
