Huione and Xinbi warranty shift operation to Tudou warranty

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Telegram has removed several fraudulent markets linked to Huione and Xinbi guarantees from its platform following the May crackdown. Still, it appears that the group behind them has found an alternative host for their operations.

According to a July report by blockchain intelligence firm TRM Labs, the banned platform was driving transactions dominated by more than $35 billion in USDT. After the takedown, the illegal ecosystem has reportedly been rebuilt and reopened through the associated Telegram-based service Tudou Warranty.

Chinese fraud hub crackdowns are not sufficient

The early enforcement wave began on May 13th, when the US Treasury Department’s Financial Crime Enforcement Network (FINCEN) issued the rules proposed under Section 311 of the U.S. Patriot Act. The rules officially designated the Huione Group, a Cambodia-operated conglomerate, as a money laundering financial institution.

Fincen cited more than $4 billion in criminal income laundry, which stemmed from cyber fraud, Pig-Butchering fraud and theft of digital assets between August 2021 and January 2025.

Huione Guarantee, the group’s flagship market, is a Chinese escrow and money laundering platform that is said to support online fraud syndicates and cybercrime networks.

Following the findings from blockchain analytics firm Elliptic, Telegram responded by banning channels linked to Huione Warranty, Xinbi Warranty and other related platforms.

The Elliptic report mentioned how the forum was used to handle fraudulent transactions while providing fraud tools sales, stolen identity data, and escrow protection.

TRM Labs: Illegal activities have moved to Tudou Guarantee

In Wednesday’s insight, TRM Labs reported that a vendor connected to Huione has moved to Tudou Warranty. It is based in a market based in another telegram where Huione Group already holds its own shares.

Due to Telegram’s ban, Huione Pay, a digital payment platform linked to the same group, has experienced a 50% jump in its transaction volume. TRM Labs concluded that the increase is directly linked to vendors moving to Tudou guarantees. These vendors use Huione Pay to store and move funds despite public enforcement actions.

Huione Guaranteed’s daily incoming transaction volume peaked at $60 million in 2024, falling to $30 million after crackdown. But even after the ban, the volume rebounded to $40 million in a short time before returning to the $30 million level.

Insights also revealed on May 25, 2025 that Huione Group had obtained a new telegram ID and channel using a new Chinese name, but retained the original “HW” initials from Haowang Branding, and the automated bot retained the Haowang name.

Meanwhile, Elliptic has identified a surge in activity across more than 30 new or lesser known guarantee platforms. Many of them continue to operate openly to fill the void left by Telegram’s crackdown on large players.

US sanctions on illegal markets continue

The US government took full action in the second half of May. The Bureau of Foreign Assets Control (OFAC) has issued target sanctions against Funnull Technology, a company linked to the Fione Group.

Funnull Technology Inc. supported Cybercriminal Networks by obtaining a large number of IP addresses from cloud service providers, and was subsequently resold to operators running rogue investment platforms.

The infrastructure has led fraudsters to host fake websites that mimic legitimate investment services and put their funds into schemes that do not exist in the victims. According to the Treasury, these frauds collectively cause more than $200 million in victim losses.

Still, enforcement measures and telegram bans do not completely shut down the broader ecosystem in Huione. Cambodia-based Huione’s salary is operational and is a priority payment processor for crypto-related fraud.