Shutdown of Huione Guarantee Spurs Surge in Telegram-Based Darknet Marketplaces

The takedown of Huione Guarantee, one of the largest crypto-enabled darknet marketplaces, has sparked a swift migration of users and vendors to alternative platforms, with at least 30 Telegram-based marketplaces experiencing a sharp uptick in activity.

In a report published on June 23, Elliptic identified Tudou Guarantee as the biggest beneficiary of Huione’s collapse. The platform has seen its user base more than double in recent weeks, with crypto inflows now matching those once processed by Huione Guarantee before it was taken offline.

Huione Guarantee ceased operations in May after Telegram launched a sweeping crackdown, banning thousands of accounts and channels linked to the illicit platform. Yet, according to blockchain analytics firm Elliptic, the shutdown hasn’t stopped the ecosystem — it has merely shifted it.

“The closure of Huione Guarantee has created an opportunity for many competitors to fill the gap,”

Elliptic noted. Among them, Tudou has emerged as the “primary winner,” absorbing a significant portion of Huione’s former user and transaction base.

The migration of users from Huione has also seen former merchants, who were previously involved in illegal activities, move to Tudou. These merchants are helping to rebuild the ecosystem for scammers. Additionally, Huione may still influence Tudou’s success, as it acquired a 30% stake in Tudou Guarantee in December.

Despite widespread reports of Huione Guarantee’s shutdown, activity associated with the brand appears to be more complicated. Analysts at Chainalysis have suggested that Huione-related activity has increased since May. However, Elliptic clarified that much of this data may be conflated with operations from Huione Pay — a large, crypto-friendly payment business under the same Cambodian conglomerate, Huione Group.

Elliptic concluded that the collapse of a single marketplace, while impactful, has merely shifted activity elsewhere.