Crypto darknet markets surge on Telegram after Huione Guarantee shutdown: report

Telegram-based alternatives have emerged to fill the void left by the shutdown of crypto darknet marketplace Huione Guarantee, according to blockchain analytics firm Elliptic.

Researchers at Elliptic have uncovered a surge in user activity across more than 30 Telegram-based marketplaces since May, when Telegram removed Huione Guarantee’s public channels.

Among the new platforms, Tudou Guarantee has seen the largest migration, with user numbers more than doubling and transaction volumes now matching those once recorded by Huione Guarantee.

Elliptic’s analysis found that many merchants formerly active on Huione Guarantee have resumed operations on Tudou Guarantee, continuing to offer services such as stolen data, money laundering, and scam-related infrastructure.

On-chain data shows that while Huione Guarantee attempted to provide private escrow services post-shutdown, its crypto transaction volumes, mainly in Tether (USDT), fell to negligible levels by late May.

The report also clarifies that some ongoing activity may have been wrongly attributed to Huione Guarantee.

Elliptic notes that other entities within the parent conglomerate, such as Huione Pay, continue to process large volumes of crypto transactions. However, these transactions are distinct from those linked to the marketplace, with different wallet infrastructure and business operations.

“The closure of Huione Guarantee has sent shockwaves through the guarantee market ecosystem, […] However, many other similar Telegram-based marketplaces remain in operation and continue to expand,” researchers said.

“It will require wider, ongoing removal of these marketplaces from Telegram if these key enablers of the global scam epidemic are to be stopped.” 

Huione Guarantee, once described as the largest darknet marketplace of its kind, had facilitated over $27 billion in illicit transactions prior to its shutdown. Operating primarily in Chinese, it functioned as an escrow-based platform connecting vendors and buyers involved in online scams, particularly across Southeast Asia and China. 

Vendors on the platform offered a range of illicit goods and services, including fake IDs, SIM cards, surveillance tools, and money laundering arrangements. Payments were typically conducted in stablecoins like USDT, with merchants required to post deposits as a trust mechanism.

Rebranded domains keep Huione network alive

Further investigation from Chainalysis supports some of Elliptic’s findings. A report earlier this month revealed that while Huione Guarantee’s original domain and public channels were taken down, its laundering network remained operational.

According to Chainalysis, Huione reemerged under a new domain, Huione.me, preserving its original branding along with its linked token XOC and the USDH stablecoin, both of which remain actively listed for trading. 

USDH, in particular, has been flagged by FinCEN for its design, which makes it difficult for law enforcement to freeze, thereby enabling illicit actors to move funds with minimal risk of seizure.

Chainalysis also observed increased activity in rival marketplaces such as Tudou Guarantee. However, it noted that these platforms processed only a fraction of Huoine’s historical volume, which exceeded $81 billion in crypto transactions since 2021.

A separate report from TRM labs warned that Huione and related groups were exploring proprietary messaging apps such as ChatMe and SafeW, designed to avoid third-party moderation as Telegram continues its crackdown.