The shuttering of major crypto darknet marketplace Huione Guarantee has seen its users flock to at least 30 successors, with one marketplace doubling its user base since May.
Huione Guarantee shut down in May after Telegram banned thousands of its associated accounts and channels.
Elliptic said in a report on Monday that in the aftermath of the shutdown, several Telegram marketplaces saw user numbers increase, but Tudou Guarantee was the “primary winner,” capturing much of Huione’s former transaction volume.
“Tudou Guarantee has seen users more than double — and cryptocurrency inflows are now approximately equal to those seen for Huione Guarantee prior to its shutdown,” Elliptic said.
Merchants make the switch, too
Along with users, merchants who formerly operated on Huione Guarantee have also moved to Tudou, offering stolen data, money laundering services, illicit goods and other products to help scammers snare victims.
Along with Tudou, Elliptic is tracking over 30 other Telegram-based dark markets that experienced an uptick in users and volume after the Huione Guarantee shut down.
“The closure of Huione Guarantee has created an opportunity for many of these competitors to fill the gap,” Elliptic said.
Huione Guarantee is also a major shareholder in Tudou after acquiring a 30% stake last December, according to Elliptic.
Elliptic reiterates Huione Guarantee is dead
Analysts at blockchain analysis firm Chainalysis have reported that activity linked to Huione Guarantee since the so-called “shutdown” hasn’t declined but instead grown.