Crypto Darknet Markets Surge 100% on Telegram After Huione Guarantee Shutdown

Crypto darknet markets have seen a significant surge on Telegram following the shutdown of Huione Guarantee, according to blockchain analytics firm Elliptic. The closure of Huione Guarantee, which was once the largest darknet marketplace of its kind, has led to a migration of users and merchants to alternative platforms, primarily on Telegram.

Researchers at Elliptic have identified over 30 Telegram-based marketplaces that have experienced a surge in user activity since May, when Huione Guarantee’s public channels were removed. Among these new platforms, Tudou Guarantee has seen the most substantial growth, with user numbers more than doubling and transaction volumes now matching those previously recorded by Huione Guarantee. Many merchants who were active on Huione Guarantee have resumed their operations on Tudou Guarantee, continuing to offer services such as stolen data, money laundering, and scam-related infrastructure.

On-chain data indicates 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. This suggests that the marketplace's operations were significantly disrupted by the shutdown. However, Elliptic notes that other entities within the parent conglomerate, such as Huione Pay, continue to process large volumes of crypto transactions, although these are distinct from those linked to the marketplace.

Elliptic’s analysis highlights that the closure of Huione Guarantee has had a profound impact on the guarantee market ecosystem. Despite the shutdown, many similar Telegram-based marketplaces remain operational and continue to expand. The report emphasizes that stopping these key enablers of the global scam epidemic will require ongoing efforts to remove these marketplaces from Telegram.

Huione Guarantee, which facilitated over $27 billion in illicit transactions prior to its shutdown, operated primarily in Chinese and 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.

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