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Expert: Tether & Telegram must stop $442B online scam industry

Cybersecurity expert urges Tether and Telegram to dismantle $442 billion scam ecosystem.

  • Elliptic’s Tom Robinson calls on Tether and Telegram to curb scams leveraging their platforms, which he states are foundational to a “$442 billion” illicit industry.
  • Criminals use Telegram-based “guarantee marketplaces” like Xinbi to sell stolen data and money laundering services, transacting primarily in USDT on the Tron blockchain.
  • Despite sanctions and platform bans, these marketplaces often adapt and persist, with Robinson criticizing Telegram’s response as the “bare minimum.”

A Cybersecurity expert is urging two major tech companies to take more decisive action against a sprawling online fraud industry that, fueled by their services, is estimated to have stolen $442 billion last year. Tom Robinson, chief scientist at blockchain analytics firm Elliptic, argues that stablecoin issuer Tether and encrypted messaging app Telegram have become essential pillars for global scam operations in an article for the Royal United Services Institute.

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Robinson details how criminals rely on “guarantee marketplaces” hosted on Telegram to sell services like stolen victim data and money laundering. These illicit platforms reportedly depend on Tether’s USDT for peer-to-peer payments, circumventing traditional bank safeguards. Consequently, major marketplaces like Huione and Xinbi have facilitated billions in transactions.

Telegram has taken some action, banning groups linked to sanctioned entities like Huione and Xinbi. However, Robinson contends these efforts are insufficient, stating the platform did the “bare minimum” to comply with UK sanctions while failing to address the underlying issue. Meanwhile, the illicit industry shows resilience; after Tudou Guarantee shuttered following law enforcement pressure, the Xinbi marketplace emerged to fill the void, reportedly processing “$35 million per day.”

Robinson also highlights a severe human cost, linking these financial scams to an estimated “300,000 trafficked workers” forced to commit fraud under threat of violence. He calls for global regulators to demand greater accountability from the technology platforms enabling this ecosystem. For its part, Tether has previously frozen wallets associated with illicit activity.

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