Blockchain cybersecurity firm Elliptic says Tudou Guarantee, a major Telegram-based illicit marketplace operating in Southeast Asia, has stopped transactions in its public groups after processing more than $12 billion, raising questions about whether the platform is shutting down or shifting tactics.
Elliptic said other parts of Tudou’s operations remain active, including gambling services, making it unclear whether the move marks the beginning of a full closure or a pivot away from fraud-related activity.
A Successor To Huione Guarantee
Tudou Guarantee, whose name translates to “Potato,” rose to prominence after Telegram shut down Huione Guarantee in May 2025. Huione had handled roughly $27 billion in illicit transactions before its closure, prompting many merchants to migrate to Tudou.
Following that shutdown, Tudou’s user base quickly doubled and transaction volumes surged. Many vendors continued offering stolen personal data, money laundering services, and scam infrastructure. Huione had acquired a 30% stake in Tudou in 2024, effectively positioning it as a successor platform.
A Marketplace Built For Scams
Merchants on Tudou sold tools and services needed to run large-scale online scams. These included stolen data, laundering services, phishing sites, and turnkey scam platforms.
Vendors also marketed face-swapping software, AI voice cloning, and deepfake tools designed to deceive victims. Tudou’s escrow system played a key role in building trust between buyers and sellers, helping the marketplace scale into a large criminal ecosystem.
Arrests And Sanctions Hit Operations
Elliptic links Tudou’s apparent shutdown to the collapse of Cambodia-based Prince Group. In October 2025, the U.S. and U.K. sanctioned Prince Group and its chairman, Chen Zhi, for operating scam compounds that relied on forced labor.
Law enforcement pressure intensified in the months that followed. On January 6, 2026, Cambodian and Chinese authorities arrested and extradited Chen to China. Shortly after, Elliptic observed a sharp decline in activity across Tudou’s main cryptocurrency wallets, suggesting the arrest had a direct impact on the marketplace’s operations.
What Comes Next
Elliptic described Tudou’s retreat as a significant blow to the Southeast Asian scam economy but cautioned that similar platforms are likely to emerge.
“The fundamental advantage remains on the side of investigators,” the firm said, pointing to the permanent on-chain records created by cryptocurrency transactions. Elliptic said the same blockchain transparency that allowed researchers to trace $12 billion through Tudou will help track where that activity migrates next.
Featured image credits: Flickr
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