Telegram-based dark markets rapidly filled the gap left by Huione Guarantee after the $27 billion marketplace disappeared on May 13, according to a June 23 Elliptic report.
Elliptic noted that Telegram banned thousands of Huione Guarantee channels and usernames once researchers traced billions of USDT-denominated sales to pig-butchering scams. However, data shows that merchants immediately moved to Tudou Guarantee, a rival in which Huione owns a 30% stake.
On-chain data recorded incoming USDT at Huione falling to near zero after the ban, while Tudou’s user count more than doubled, with inflows matching Huione’s pre-shutdown volumes.
Guarantee markets operate in Chinese on Telegram and settle exclusively in USDT. Vendors supply stolen data, money laundering pathways, and other services essential to large-scale online fraud.
The escrow model lets buyers and sellers resolve disputes without exposing real identities, and Tether’s dollar peg eliminates local currency volatility.
Distinct payment rail from Huione Pay
Observers sometimes confuse Huione Guarantee with Huione Pay, a Cambodia-based payment firm still processing large USDT volumes.
Elliptic separated the two through wallet analysis and noted that Huione Pay’s traffic remained high even after FinCEN labeled the parent Huione Group “a financial institution of primary money laundering concern” and proposed cutting its US access.
Elliptic tracked more than 30 active Guarantee markets and warned about fake venues that target inexperienced criminals.
Tudou led the post-shutdown surge, but smaller competitors also gained users as merchants duplicated listings across platforms.
Ecosystem adapts to channel bans
The closure of the Huione Guarantee sent temporary shock waves through a network of hundreds of thousands of scammers, intermediaries, and brokers across Southeast Asia and China.
Elliptic’s data showed no enduring decline in overall Guarantee-market volume one month later, indicating that liquidity migrated swiftly to replacement channels.
The report concluded that coordinated, sustained, removals will be required to disrupt an ecosystem built on Telegram escrow and USDT settlements.
Huione Guarantee’s downfall disrupted one node, but the broader dark market structure continues to expand within the messaging app.