Another sign has emerged that law enforcement's successful operations in shutting down illicit marketplaces are short-lived, as merchants and users quickly move to new platforms.
This time, blockchain analysis company Elliptic said it has found that after the largest illicit marketplace to have ever existed, Huione Guarantee, was closed by Telegram in May, Tudou Guarantee marketplace has become the primary winner of this.
Moreover, other Telegram-based guarantee marketplaces, or illicit Chinese-language online markets, have also received an influx of new users. While Elliptic says they're tracking over thirty highly active markets, the number of Tudou Guarantee users has more than doubled.
Moreover, blockchain analysis has shown that cryptoasset inflows have approximately reached the levels seen on Huione Guarantee just before its shutdown. Usually, payments in these types of marketplaces are done with the most popular stablecoin, tether (USDT).
"Many of the merchants operating on Tudou are the same ones that previously sold through Huione Guarantee, offering stolen data, money laundering services, and other products needed by scammers," the blockchain analysts said, adding that Huione Guarantee bought a 30% stake in Tudou Guarantee in December 2024.
Meanwhile, as Huione Guarantee was stopped, Huione Pay is still operating. Both entities are tied to Huione Group, a Cambodian conglomerate with links to Cambodia’s ruling Hun family.
Huione Pay is said to be a large payments business with bricks-and-mortar outlets across Cambodia that also accepts payments in cryptocurrency and has been accused by Elliptic of laundering the proceeds of online scams.
However, what helps this payment service operate is that, per the analysts, Huione Pay and Huione Guarantee were engaged in very different activities, with different cryptoasset wallet infrastructure.
According to Elliptic, more efforts are needed in order to stop "these key enablers of the global scam epidemic."
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