Telegram has taken decisive action against two massive black markets operating on its platform, shutting down operations that have generated a combined $35 billion. These illicit markets were known for selling stolen data and offering services to launder cryptocurrency.
According to a report by blockchain research firm Elliptic, the two Chinese-language black markets, Xinbi Guarantee and Huione Guarantee, were banned from Telegram. The markets had racked up enormous sums through their illicit services, with Huione Guarantee alone amassing $27 billion since its inception in 2021.
In a statement released today, Telegram confirmed the ban, calling it a major step in tackling online fraud. The U.S. Treasury had already planned to blacklist the Huione Group earlier this month, further highlighting the global scrutiny surrounding these operations.
Selling Stolen Data and Laundering Cryptocurrency
The two black markets generated their revenue by selling stolen data from unknown users, though the exact sources and reasons behind the data theft remain unclear. They also provided services for laundering cryptocurrency, which further compounded their illicit activities.
Telegram’s decision to shut down these markets was reportedly part of an ongoing investigation into the web’s largest black market, which has been tied to crypto laundering activities. While the U.S. Treasury’s actions were related to financial sanctions, Telegram’s crackdown was focused on removing these dangerous operations from its platform.
The Dark Side of Telegram
Telegram has long been a popular alternative to other messaging platforms like WhatsApp, but it has also attracted controversy. Telegram’s founder and CEO, Pavel Durov, recently revealed that the platform’s massive scale was maintained with only 30 engineers and himself managing the product. This raised concerns about its security and moderation capabilities.
Last year, Durov faced legal action upon arrival in Paris, where he was served a warrant due to Telegram’s lack of content moderation. The platform has been used by various threat actors for online fraud, including extremist groups and criminals involved in terrorist activities and cryptocurrency laundering. Telegram has also been criticized for enabling the spread of harmful and sensitive content, including personal data and explicit material, through its group chats and channels.
What The Author Thinks
While Telegram’s crackdown on these black markets is a positive step, it highlights a larger issue of insufficient oversight on platforms that are widely used but poorly regulated. The fact that Telegram has been a haven for criminals and harmful content for so long shows a clear need for stricter regulation and proactive content moderation. As these platforms grow, it’s essential for both governments and tech companies to ensure they don’t become breeding grounds for illegal activities.
Featured image credit: Heute
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