In the shadowy corners of the digital world, it seems like the Hydra of crypto scams has once again sprouted new heads. Despite a well-publicized crackdown by Telegram on fraudulent activities, certain platforms like Shuangying and Fully Light have experienced a meteoric rise in transactions, reportedly surging by three to four times in the wake of the Huione ban. It’s a disconcerting development for those who hoped that recent efforts might finally put a lid on scam markets.
The Resilient Nature of Crypto Scams
Here’s the catch: as one door closes, another opens wide. What we’re witnessing is a classic game of whack-a-mole—smash one scam, and others appear, seemingly more vigorous than before. According to blockchain analyst Jenna Wu, “These platforms are incredibly adaptable. They exploit the regulatory gaps and the anonymity that crypto inherently provides.” Wu’s insights echo a broader sentiment across the industry: it’s not just about clamping down on one platform but understanding the ecosystem that allows such platforms to thrive. This adaptability is reminiscent of the tactics seen in AI Deepfakes Drove 40% of High-Value Crypto Fraud Last Year, highlighting the innovative yet concerning methods scammers employ.
The Huione ban, initially perceived as a significant victory in the fight against crypto scams, might have inadvertently shifted traffic to these lesser-known platforms. Shuangying and Fully Light, which were relatively obscure names in the crypto space, have capitalized on the void left by Huione, attracting users who may have been displaced by the crackdown. “It’s like a waterbed—press down in one area, and it just bulges elsewhere,” remarked Ethan Clarke, a cybersecurity expert.
The Market’s Response
What does this mean for the market? Well, it’s complicated. The rise in transactions on these platforms might suggest a thriving sub-economy, but it also raises alarms about the vulnerability of crypto users. The anonymity that makes crypto appealing also makes it ripe for exploitation. “There’s a certain Wild West mentality at play,” notes crypto trader Liam Sanders. “People are drawn to the untamed nature of these markets, but that comes with risks.” This is further evidenced by the increase in Crypto-Related Anti-Money Laundering Reports Rose by 8% in Germany Last Year, indicating a growing concern over illicit activities.
This growth in scam markets could potentially undermine trust in the broader cryptocurrency ecosystem. While legitimate platforms continue to work on enhancing security and transparency, the existence of thriving scam hubs poses questions about the effectiveness of current regulatory measures. Are regulators equipped to handle the ever-evolving tactics of crypto scammers? That’s where it gets interesting and somewhat worrisome.
The Road Ahead
Looking forward, the key challenge lies in developing a robust regulatory framework that doesn’t stifle innovation but effectively curtails fraudulent activities. The crypto community is at a crossroads—striking a balance between regulation and freedom is crucial for its growth and acceptance. Some industry veterans, like blockchain consultant Maria Lopez, argue for a collaborative approach. “Engaging with regulators, developers, and users can lead to innovative solutions that protect without constraining,” Lopez suggests.
However, the road to a secure crypto future is fraught with challenges. Implementing comprehensive regulations is easier said than done, especially in an industry characterized by rapid technological advancements and global reach. And with platforms like Shuangying and Fully Light thriving in the shadows, the urgency for effective solutions has never been greater.
As June 2025 unfolds, the crypto world watches closely. Will regulators and industry leaders rise to the occasion, or will scam markets continue to exploit loopholes and anonymity? As the dust settles, one thing remains clear: the battle against crypto scams is far from over, and the stakes could not be higher.
Source
This article is based on: Crypto Scam Markets Thrive Again After Telegram’s Cleanup Attempt: Report
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
