A recent report by blockchain analytics firm Elliptic states that the successor platforms have already processed some $27 billion in transactions, equalling previous volumes.
Is the Scam Market Growing Big Again?
According to Elliptic, most of the transaction volume handled in the past by Huione was absorbed by the Tudou Guarantee marketplace. Shortly after Elliptic published research revealing Huione's significant involvement in Asia's cybercrime infrastructure, Telegram banned the company on 13 May.
Following the shutdown, Tudou experienced a sharp increase in transactional activity, while Huione's dropped to zero as early as 11 May. Transactions exceeded 200,000 on 18 May and 300,000 on 15 June.
"The closure of Huione Guarantee shook up the entire ecosystem of guarantee markets, consisting of hundreds of thousands of online fraudsters, money launderers and stolen data brokers active in Southeast Asia and China," said Elliptic.
These platforms function as 'collateral markets', offering escrow-like services via Telegram, using USDT, the stablecoin issued by Tether. They play a key role in facilitating illicit trade in stolen information, money laundering services and tools for scams, such as so-called fraud schemes "pig butchering" that often target Western citizens.
By the end of May, transfers in USDT on Huione had virtually zeroed out, according to Elliptic's on-chain analysis. The company called the operation 'the largest black market ever', exceeding even the scale of Silk Road and AlphaBay. Telegram also deleted thousands of accounts and channels linked to it.
However, the crackdown may have come too late. As early as December 2024, Huione had acquired a 30 per cent stake in Tudou Guarantee, laying the groundwork for a contingency plan in the event of disruptions.
A high level of continuity in the illegal ecosystem is evidenced by the fact that, according to Elliptic, 'many of the sellers on Tudou are the same ones who previously operated on Huione'.
With more than 30 active platforms competing for domain dominance after Huione, the report also describes the broader landscape of underground markets. Both Shuangying and Fully Light, two up-and-coming new entrants, experienced steady growth. By mid-June, transaction volume on Shuangying increased from 40,000 to 110,000, while Fully Light's grew from 20,000 to over 80,000.
The vendors continue to openly promote their money laundering, data theft, and online fraud services.
Elliptic emphasised that the only way to dismantle these well-established networks is to take continuous and widespread action, particularly on platforms such as Telegram.
