Telegram Closes Two Significant Black Market Activities
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Brief Overview
- Telegram has closed down two prominent black markets: Xinbi Guarantee and Huione Guarantee.
- These platforms were responsible for facilitating more than AU$54.6 billion in illegal transactions since 2021.
- They were recognized as central locations for cybercriminals, fraudsters, and money laundering activities.
- Huione Guarantee is associated with the Cambodia-based Huione Group, which is also connected to North Korean cybercrime.
- The U.S. authorities have blacklisted Huione Group for its support of malicious cyber actors.
- This closure represents a major setback for global online fraud and digital crime networks.
Telegram’s Fight Against Cybercrime Networks
Telegram, the cloud-based messaging service, has taken significant steps by shutting down two infamous black markets—Xinbi Guarantee and Huione Guarantee—both of which were operating openly on its platform. These Chinese-language services were notorious for enabling cybercrime, providing opportunities for stolen data trading, money laundering, and even telecom infrastructure for scammers.
Telegram asserted that such unlawful activities breach its terms of service and are eliminated as soon as they are detected. This action underscores an increasing commitment by technology platforms to combat illegal activities that occur in plain sight.
AU$54.6 Billion in Illegal Transactions
As per the blockchain analytics company Elliptic, Xinbi Guarantee and Huione Guarantee jointly facilitated over US$35 billion (approximately AU$54.6 billion) in transactions since 2021. This far exceeds the volume of the infamous dark web marketplace Silk Road, which was shut down by the FBI in 2013 after facilitating around US$1.2 billion in drug-related transactions.
“This is a significant setback for online fraudsters who depended on these markets for stolen data, laundering services, and telecom infrastructure,” commented Elliptic.
What Were Xinbi and Huione Guarantee?
Xinbi Guarantee and Huione Guarantee functioned as escrow services and transaction intermediaries within illicit Telegram groups. These offerings were utilized by cybercriminals to conduct large-scale fraudulent schemes, including investment scams and identity theft. Their closure has disrupted a vital segment of the underground digital economy.
Huione Guarantee had recently undergone a rebranding as “Haowang Guarantee” before its termination. It confirmed on its official website that it had been blocked by Telegram and announced the cessation of its operations.
Connections to the North Korean Lazarus Group
Huione Guarantee is a division of the Cambodia-based Huione Group, which also runs Huione Pay and Huione Crypto. These organizations have drawn attention from international law enforcement. In 2023, Huione Pay was linked to a cryptocurrency wallet tied to the notorious North Korean Lazarus Group, a state-sponsored hacking entity responsible for some of the globe’s most remarkable cyberattacks.
This discovery, along with subsequent financial connections, resulted in the United States government placing the entire Huione Group on a sanctions list, restricting its access to the U.S. financial system. Treasury Secretary Scott Bessent referred to the group as “the preferred marketplace for malicious cyber actors.”
Global Consequences and Australia’s Cybersecurity Scenario
Australia, similar to many other countries, is increasingly influenced by international cybercrime organizations. The dismantling of Xinbi and Huione could assist in decreasing the number of scams and fraudulent investment operations aimed at Australians. In 2023 alone, Australians fell victim to over $3 billion in scams, according to Scamwatch. Eliminating communication pathways utilized by scammers may help mitigate this escalating problem.
Cybersecurity professionals in Australia have praised Telegram’s actions but caution that more measures need to be implemented. Criminal enterprises are highly adaptable, and new avenues may appear to replace those that have been dismantled.
Conclusion
Telegram’s action against Xinbi Guarantee and Huione Guarantee has delivered a severe setback to the cybercriminal ecosystem. These platforms had handled over AU$54.6 billion in illegal transactions, facilitated scams, and supposedly supported operations linked to North Korean hackers. With mounting pressure from international regulators and escalating public scrutiny, technology companies are intensifying their enforcement against illicit activities on their platforms. Nonetheless, the battle against cybercrime is ongoing, and ongoing vigilance will be crucial to safeguarding users and financial systems around the world.
Q: What were Xinbi Guarantee and Huione Guarantee?
A:
These were Chinese-language black market services operating on Telegram. They acted as escrow services for cybercriminals, providing money laundering, stolen data trading, and various illicit fintech services.
Q: Why did Telegram dismantle these platforms?
A:
Telegram pointed to violations of its service terms, especially regarding criminal activities such as scams and money laundering. The platforms were taken down upon discovery.
Q: How much money flowed through these markets?
A:
Blockchain analytics firm Elliptic estimated that Xinbi and Huione processed over US$35 billion (AU$54.6 billion) in illegal transactions since 2021.
Q: What is the Huione Group?
A:
Huione Group is a conglomerate based in Cambodia behind Huione Guarantee. It also oversees Huione Pay and Huione Crypto and has been linked to the North Korean Lazarus hacking group, resulting in U.S. sanctions.
Q: What are the repercussions for Australia?
A:
Australians are common targets for online scams. Disrupting these global black markets may lessen financial losses and shield consumers from fraud originating from overseas.
Q: Is this the end of such black markets on Telegram?
A:
Not necessarily. While this disruption is substantial, cybercriminals can regroup and identify alternative platforms. Continuous oversight and enforcement are critical.
Q: How can users safeguard against online scams?
A:
Australians should stay updated on scam strategies, employ two-factor authentication, avoid dubious links, and report any fraudulent actions to Scamwatch or the Australian Cyber Security Centre (ACSC).
Q: What role do messaging platforms play in cybercrime?
A:
Messaging services like Telegram can be exploited by criminals for secure communication, trading illegal goods, and managing scams. However, with proactive moderation and enforcement, platforms can also contribute to the solution.