Elliptic analysts have tracked a migration of Chinese criminal groups from Tor to Telegram. Syndicates have ditched the complex architecture of the darknet for public channels, laundering nearly $2 B monthly. Volumes on the two largest platforms have already eclipsed historical records set by Silk Road and AlphaBay.
Successors to Silk Road
Until 2025, the market was dominated by Huione Guarantee, which saw $27 B in turnover — dwarfing volumes seen on Hydra and AlphaBay. After being hit with US sanctions, the platform rebranded but failed to hold its lead. Now, Tudou and Xinbi control the bulk of the action: the former handles $1.1 B a month, the latter $850 M.
“Larger ecosystems in illegal crypto simply do not exist right now,” notes Elliptic cofounder Tom Robinson.
Telegram’s Stance
The messenger’s team argues that these channels offer Chinese citizens financial freedom to bypass strict state controls, and refuses to ban them.
Analysts view this argument as a smokescreen: instead of tools to protect savings, Tudou and Xinbi trade in mixer services, stolen data, deepfake software, and human trafficking.
The “Pig Butchering” Industry
Darknet markets are fueled by “pig butchering” schemes, where victims are groomed for months before their assets are drained. In the US alone, losses from this type of scam reach $10 B annually.
Experts argue that Telegram provides the infrastructure, while syndicates scale the business by relying on slave labor in Southeast Asian camps.
USDT has become the currency of choice for this shadow sector. While the stablecoin issuer technically has the power to freeze addresses, it rarely intervenes.
Jacob Sims, an expert at the Harvard Asia Center, points to the total impunity enjoyed by scammers: local police raids are ineffective, and operations restart almost instantly. According to Sims, only international pressure on par with anti-terrorist operations will change the situation.
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