Tudou Guarantee Collapse: $130M USDT Refunds Expose Massive Crypto Scam Marketplace Shutdown

January 2025, Cambodia — A major Telegram-based escrow service linked to one of cryptocurrency’s largest illicit marketplaces appears to be winding down operations after refunding more than $130 million in stablecoins, according to blockchain analytics firm Bitrace. This development potentially disrupts a significant hub for crypto-related fraud that has operated for years under increasing global scrutiny. The Tudou Guarantee service, connected to the Cambodia-based Huione Group financial conglomerate, began returning funds to merchants in early 2026, signaling what analysts describe as a potential collapse of a multi-billion dollar scam ecosystem.

Tudou Guarantee’s $130 Million USDT Refund Timeline

Blockchain data reveals a systematic refund process that started with approximately $3.7 million in Tether USDt (USDT) on January 1, 2026. Subsequently, the refunds peaked at about $18.1 million on Sunday, according to Bitrace’s detailed transaction analysis. The company seemingly announced its operational shuttering through its Telegram channel earlier on Friday, based on screenshots shared by the blockchain analytics firm. This refund pattern suggests a coordinated wind-down rather than a sudden collapse, indicating possible regulatory pressure or internal restructuring within the Huione Group’s operations.

Historically, Tudou Guarantee served as the rebranded version of Huione Guarantee after blockchain security company Elliptic exposed it as a multi-billion-dollar marketplace for online fraudsters in July 2024. The service operated as an escrow mechanism for illicit transactions, providing supposed security for both buyers and sellers within dark web marketplaces. Meanwhile, the refund activity represents one of the largest documented returns of funds within crypto scam ecosystems, potentially affecting hundreds of vendors who relied on the platform for fraudulent operations.

Impact on Global Crypto Scam Operations

The Tudou Guarantee shutdown may lead to a significant slowdown in phishing and pig butchering scams, which were previously offered as services by hundreds of vendors on the marketplace. These sophisticated fraud schemes typically involve prolonged emotional manipulation to convince victims to transfer their cryptocurrency holdings. In December 2025, for instance, one investor lost their entire Bitcoin retirement fund in an artificial intelligence-fueled romance scam orchestrated through similar platforms.

According to blockchain security firm CertiK, phishing scams became the second-largest threat after supply-chain breaches in 2025, costing crypto investors a cumulative $722 million across 248 documented incidents. The Tudou Guarantee marketplace facilitated many of these operations through its cryptocurrency infrastructure, which processed at least $24 billion in transactions before the current wind-down. Consequently, security experts anticipate a temporary disruption in scam activities as fraudsters seek alternative platforms and payment channels.

Elliptic’s Previous Investigations and Findings

Elliptic’s January 2025 report previously uncovered thousands of wallet addresses associated with Tudou Guarantee’s vendors and operations, helping legitimate users steer clear of this entity. The blockchain security company flagged approximately $89 billion in cryptocurrency received by these illicit wallets over several years of operation. This massive scale demonstrates how the marketplace evolved from simple fraud operations to a sophisticated financial ecosystem with its own infrastructure.

The Huione Group expanded its crypto endeavors significantly in September 2024 by launching a US dollar-based stablecoin, following earlier launches of a proprietary blockchain, cryptocurrency exchange, and messaging application. This vertical integration created a self-contained ecosystem that facilitated illicit transactions while attempting to evade traditional financial monitoring systems. The group’s quarterly payment receipts, documented by Elliptic, showed consistent growth until the recent disruption.

Broader Implications for Crypto Security and Regulation

The Tudou Guarantee situation highlights several critical trends in cryptocurrency security and regulation. First, blockchain analytics capabilities have advanced sufficiently to track and expose large-scale illicit operations, even when they attempt to obscure transactions through multiple layers. Second, stablecoins like USDT have become preferred instruments for both legitimate and illicit transactions due to their price stability and widespread acceptance.

Third, the geographic concentration of such operations in jurisdictions with developing regulatory frameworks presents ongoing challenges for global enforcement. Cambodia’s evolving approach to cryptocurrency regulation has created both opportunities for legitimate innovation and vulnerabilities exploited by illicit actors. The Huione Group operated multiple financial services, including payment service Huione Pay and crypto exchange Huione Crypto, alongside the guarantee service now winding down.

Security professionals note that while the Tudou Guarantee shutdown represents progress, similar operations often reemerge under different names and structures. The underlying demand for anonymous transaction facilitation in illicit markets persists, driving continuous innovation in both fraudulent schemes and the platforms that enable them. Therefore, sustained monitoring and international cooperation remain essential for meaningful disruption of these ecosystems.

Conclusion

The Tudou Guarantee wind-down amid $130 million USDT refunds marks a significant development in the ongoing battle against cryptocurrency fraud. This event demonstrates how blockchain analytics, regulatory pressure, and market forces can combine to disrupt even well-established illicit operations. While the immediate impact may reduce certain scam activities temporarily, the broader ecosystem of crypto-related fraud continues to evolve. The situation underscores the importance of continued investment in blockchain security tools, international regulatory coordination, and public education about cryptocurrency risks. As the digital asset landscape matures, such disruptions will likely become more frequent, gradually improving the security environment for legitimate participants while challenging illicit actors to develop increasingly sophisticated evasion techniques.

FAQs

Q1: What was Tudou Guarantee’s primary function in the crypto ecosystem?
Tudou Guarantee operated as a Telegram-based escrow service that facilitated transactions within illicit marketplaces, providing supposed security for both buyers and sellers engaged in fraudulent activities.

Q2: How significant were the operations linked to Tudou Guarantee before the shutdown?
Blockchain analytics firm Elliptic documented approximately $89 billion in cryptocurrency flowing through wallets associated with Tudou Guarantee vendors, with the service processing at least $24 billion in transactions directly.

Q3: What types of scams were facilitated through this marketplace?
The platform primarily enabled phishing and pig butchering scams, which involve sophisticated social engineering techniques to defraud cryptocurrency investors through emotional manipulation and false investment opportunities.

Q4: Why are stablecoins like USDT preferred for such operations?
Stablecoins offer price stability compared to volatile cryptocurrencies, making them predictable instruments for transactions. Their widespread acceptance across exchanges and wallets also facilitates movement of funds within the crypto ecosystem.

Q5: Will this shutdown permanently reduce crypto scam activities?
While the Tudou Guarantee wind-down will likely disrupt specific operations temporarily, similar platforms often reemerge under different names. The fundamental demand for illicit transaction facilitation persists, requiring ongoing security measures and regulatory attention.