Telegram’s May 2025 ban on two major illicit cryptocurrency marketplaces, Huione Guarantee and Xinbi Guarantee, has disrupted Southeast Asia’s guarantee services ecosystem, though it has not eradicated it.
According to a July 29, 2025, report by TRM Labs, these platforms, which facilitated over $35 billion in USDT-denominated transactions, were central to scams like pig butchering, money laundering, and cyber fraud.
Meanwhile, on July 30, 2025, the White House released a report on digital assets, signaling a broader push to regulate and legitimize the crypto industry.
Together, these developments highlight the dual challenge of combating illicit crypto activity while fostering meaningful progress in the digital asset space.
The Telegram ban followed the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) designating Cambodia-based Huione Group as a “primary money laundering concern” on May 1, 2025, under Section 311 of the USA PATRIOT Act.
Huione Guarantee, a subsidiary, and Xinbi Guarantee, likely based in the Asia-Pacific’s Golden Triangle (Myanmar, Thailand, Laos), were targeted for their roles in enabling cybercrime.
Huione’s infrastructure, including Huione Pay and its stablecoin USDH, supported scams with minimal anti-money laundering (AML) controls.
Xinbi, with 233,000 users and $8.4 billion in transactions since 2022, offered escrow services for illicit deals, including money laundering and stolen data sales.
Despite Telegram’s swift removal of thousands of related channels, the illicit ecosystem proved resilient.
TRM Labs reported that Huione Guarantee’s daily transaction volume, which peaked at $60 million in 2024, spiked temporarily to $40 million post-ban before stabilizing at $30 million—half its peak. Vendors migrated to Tudou Guarantee, a Huione-affiliated platform, which saw a 70-fold increase in transaction activity.
Xinbi Guarantee, re-emerging on Telegram within days, experienced a 90% surge in daily inflows, even announcing a partnership with “Solaire Casino,” likely referencing the Philippine casino chain used as a money-laundering hub.
TRM’s blockchain analysis revealed overlapping infrastructure between Huione Pay, Huione Guarantee, and Tudou, underscoring the interconnected nature of these operations.
The U.S. escalated efforts with sanctions from the Office of Foreign Assets Control (OFAC) on May 29, 2025, targeting Funnull Technology, a Philippines-based scam facilitator linked to Huione.This adaptability of illicit actors underscores the limitations of platform bans without sustained enforcement.
TRM noted that Huione and Xinbi are exploring alternatives like proprietary SMS apps (ChatMe and SafeW), signaling a potential shift to decentralized platforms to evade moderation.
While Telegram’s cooperation with authorities has improved, driven partly by CEO Pavel Durov’s response to regulatory pressure, the persistence of these networks highlights the need for global collaboration and advanced tools like AI-driven blockchain analytics to track illicit flows.
Concurrently, the White House’s digital asset report emphasizes a balanced approach to crypto regulation.
It outlines efforts to protect consumers, enhance financial stability, and counter illicit finance while promoting tech advancements.
The report highlights progress in stablecoin regulation, with the U.S. advancing bills to ensure issuers hold sufficient reserves, and international coordination through frameworks like the EU’s Markets in Crypto-Assets (MiCA).
It also addresses risks, noting that stablecoins like USDT, heavily used in illicit markets like Huione, dominate criminal transactions.
The report advocates for stronger AML measures and public-private partnerships, aligning with TRM’s findings that jurisdictions with regulations see lower illicit crypto activity.
These developments reflect a critical juncture for the crypto industry.
Telegram’s ban and U.S. enforcement actions signal a tougher stance on illicit finance, but the rapid adaptation of criminal networks demands ongoing vigilance.
The White House’s report offers a roadmap for legitimizing digital assets, but its success hinges on global regulatory alignment and technological developments to outpace cybercriminals.
As the crypto space evolves, collaboration between governments, platforms, and blockchain intelligence firms will be vital to curb fraud while unlocking the potential of digital finance.
