Report: Tudou Guarantee scam marketplace shutdown may be imminent

Operations of Tudou Guarantee, which became the third largest cybercriminal marketplace after processing over $12 billion in illicit proceeds, may be winding down following the cessation of transactions in its Telegram groups, Security Affairs reports.

Despite the stoppage of transactions, Tudou Guarantee's other divisions, including its gambling arm, remain functional, which may also indicate a change of strategy for the marketplace, according to an analysis from blockchain security firm Elliptic. Activity in Tudou's primary cryptocurrency wallets plunged following the arrest and extradition of Prince Group Chairman Chen Zhi earlier this month. Prince Group and Zhi had been sanctioned by the U.S. and UK in October over operations of scam hubs in Cambodia.

"The closure of Tudou is a significant blow to the Southeast Asian scam economy, but history suggests the vacuum will not remain unfilled for long," said Elliptic researchers, who noted that investigators continue to have the upper hand as transactions on the scam platforms are permanently on the blockchain.