In recent years, the Telegram messaging app has become a favorite destination for cryptocurrency enthusiasts. Illegal markets, largely fueled by the use of the USDT stablecoin, are trying to capitalize on this adoption.
Telegram vs. the dark market: war is declared
The rise of cryptocurrencies is not always moving in the best possible direction. Indeed, malicious actors often favor these digital solutions in order to obtain payments that are both fast and supposedly untraceable. We will come back to this later…
This logic is behind the popularity of certain long-standing darknet markets, such as the infamous Silk Road. This marketplace for illegal goods, whose highly controversial founder Ross Ulbricht was recently pardoned by President Donald Trump under pressure from American libertarians,
Far from slowing down, criminals’ appetite for crypto payments seems to be growing over time. More specifically, it is the business models that are evolving in order to find the best possible medium for remaining visible and elusive.
This change was recently highlighted by the on-chain analysis and investigation firm Elliptic in a comprehensive report published last January.
On the agenda: the unprecedented development of the “largest illicit online marketplace of all time,” Huione Guarantee, on the Telegram messaging app, with an estimated total transaction value of $27 billion since its launch in 2021.
The USDT stablecoin in the spotlight
This exposure led to the permanent closure of this dark market last May, following the blocking of its public channels and the blacklisting of its name by the Telegram messaging service to prevent its reopening. But the battle is far from won, given the proliferation of similar new markets such as “Tudoo Guarantee.”
Clearly, only one factor seems to remain constant in this criminal equation: the systematic use of the USDT stablecoin. This highly centralized, dollar-backed cryptocurrency appears to be the preferred means of payment on these marketplaces.
This choice may seem strange, given that Tether is able to freeze funds involved in illegal transactions. This is particularly true considering the fierce determination shown recently by its CEO, Paolo Ardoino, to ensure regulatory compliance.
The Elliptic report highlights the widespread use of USDT for criminal purposes, to the extent that it estimates its importance based on its transactions. This is certainly not going to help the giant Tether, which has already been blacklisted in Europe since the effective implementation of the MiCA regulatory framework.
