Despite the highly publicized shutdown of Huione Guarantee a notorious crypto-enabled darknet marketplace Telegram-based alternatives are rapidly filling the void. According to new research from blockchain analytics firm Elliptic, more than 30 Telegram-based marketplaces have surged in activity since Huione’s removal from the platform in May.
At the forefront of this shift is Tudou Guarantee, which has become the primary migration hub for Huione’s former users and vendors. Elliptic reports that Tudou’s user base has more than doubled, and its transaction volumes now rival those once seen on Huione Guarantee, highlighting the adaptability of illicit crypto ecosystems.
Huione’s Fall, Tudou’s Rise
Following the removal of Huione Guarantee’s public channels by Telegram, its on-chain activity plummeted. While Huione briefly attempted to operate private escrow services, its crypto volumes primarily in USDT fell to near-zero by late May.
Despite Huione Guarantee’s fall, Elliptic analysts caution that some residual activity has been incorrectly attributed to it. In fact, much of the illicit trade has migrated elsewhere, particularly to Tudou Guarantee and similar services still operating openly on Telegram.
“The closure of Huione Guarantee has sent shockwaves through the guarantee market ecosystem,” Elliptic said. “However, many other similar Telegram-based marketplaces remain in operation and continue to expand.”
Services Offered & Threat Landscape
Tudou Guarantee and its peers are offering many of the same services that made Huione infamous, including:
- Sale of stolen personal data
- SIM card fraud
- Fake identification
- Money laundering arrangements
- Infrastructure for online scams
These marketplaces continue to function using escrow systems and require merchants to post deposits to build trust, mirroring Huione’s operational model. Transactions are typically conducted using Tether (USDT), a popular stablecoin in dark markets due to its price stability and liquidity.
Legacy of Huione Guarantee and Rebranding Tactics
Before its takedown, Huione Guarantee had facilitated over $27 billion in illicit crypto transactions, operating predominantly in Chinese across Southeast Asia and beyond. However, the broader Huione network hasn’t disappeared.
A report from Chainalysis reveals that the Huione brand has re-emerged under a new domain Huione.me, still promoting its original branding, along with the controversial XOC token and USDH stablecoin. Notably, USDH has been flagged by FinCEN due to its resistance to law enforcement intervention, making it a favored tool for laundering and fund movement.
Shift Toward Encrypted Apps and Decentralized Messaging
Both Elliptic and TRM Labs have highlighted the increased interest in proprietary communication apps, such as ChatMe and SafeW, designed to avoid third-party moderation. These apps could allow darknet vendors to bypass Telegram’s content enforcement, creating new challenges for regulators and investigators.
Meanwhile, the parent conglomerate behind Huione, including Huione Pay, reportedly continues processing significant volumes of crypto transactions, though these have been separated from marketplace activities and use distinct wallet infrastructures.
The Road Ahead
As Telegram cracks down on public scam networks, illicit operators are evolving, shifting to semi-private ecosystems that are harder to track. Both Elliptic and Chainalysis warn that removing one platform is not enough a coordinated effort across messaging services, stablecoin issuers, and blockchain analytics is required to effectively disrupt these operations.
“It will require wider, ongoing removal of these marketplaces from Telegram if these key enablers of the global scam epidemic are to be stopped,” Elliptic concludes.
As Huione fades, Tudou and other platforms rise proving once again that darknet markets may shut down, but they rarely stay down.
