Crypto Scam Hub Shuts Down After $130M USDT Refunds Shake Telegram Markets Hard

Escrow Service Halts Operations, Disrupting Fraud Networks

A Telegram-based crypto escrow service, integral to underground marketplaces and organized crypto scams, has ceased operations. This shutdown follows massive stablecoin refunds totaling over $130 million in USDT, causing significant disruption across Telegram markets associated with fraudulent activities. The move signals a structural shift in how large fraud networks manage and move funds.

Tudou Guarantee, an escrow service linked to the Huione Group, returned substantial USDT amounts to its merchants. Data from Bitrace indicates that these refunds began at $3.7 million and rapidly escalated, peaking around $18.1 million, suggesting a coordinated repayment effort.

Screenshots circulating on Telegram reveal an announcement detailing the halt of Tudou Guarantee's operations. The message stated that merchants would no longer receive escrow support, appearing shortly after unusually large outbound stablecoin transactions were observed on-chain. Tudou Guarantee served as a critical escrow layer within the Huione Group's ecosystem, which encompasses payment services, a cryptocurrency exchange, and merchant settlement products. For years, it provided trusted infrastructure for hundreds of anonymous vendors.

Many of these vendors utilized the platform to promote easily deployable scam services, including phishing campaigns and pig butchering schemes that targeted global cryptocurrency users. This integration embedded the platform deeply within Telegram-based fraud markets.

Liquidity Shock Across Telegram Scam Markets

The wave of refunds has imposed immediate liquidity stress across Telegram channels associated with scams. Escrow services are foundational to establishing trust between anonymous parties, and their absence is expected to lead to a sharp decline in transaction volume. Analysts suggest that sudden large-scale refunds often indicate risk mitigation strategies rather than voluntary goodwill. Such withdrawals can reduce exposure ahead of potential enforcement actions or reputational damage, a pattern observed before the disappearance of other illicit marketplaces.

This disruption is likely to slow down scam activities that rely on readily available vendor infrastructure. Many operators may lack the technical expertise to quickly implement alternative escrow systems. Consequently, smaller groups might be forced to pause their operations or cease them altogether.

Building Enforcement Pressure on Crypto Fraud Networks

Blockchain security firms had previously identified Tudou Guarantee as a significant risk node. Elliptic, for instance, linked thousands of wallets to the platform that collectively received approximately $89 billion in crypto associated with fraud. Elliptic also estimated that Tudou Guarantee processed at least $24 billion in transactions as it transitioned to proprietary crypto infrastructure, which included its own blockchain, exchange, and internal messaging tools.

The group later introduced a US dollar-pegged stablecoin to facilitate internal settlements. While this move enhanced efficiency, it also increased transparency, making fund flows easier to trace across connected wallets. Cryptocurrency fraud continues to inflict substantial losses across the industry. CertiK reported that in 2025, $722 million was lost to phishing attacks across 248 incidents, and romance scams remain prevalent due to emotional manipulation tactics.

The collapse of Tudou Guarantee represents a rare instance of large-scale disruption within these illicit networks. Analysts anticipate that scam operators will actively seek alternative solutions as enhanced blockchain surveillance shortens the operational lifespan of major illicit escrow platforms.