- Key insight: Tudou Guarantee ceased operations in January following the arrest and extradition of alleged scam tycoon Chen Zhi.
- What’s at stake: Tudou’s collapse disrupts critical infrastructure for “pig butchering” scams that rely on U.S. banks to launder funds.
- Expert quote: U.S. Attorney Jeanine Ferris Pirro described the scams as a “generational wealth transfer” from Main Street to organized crime.
Overview bullets generated by AI with editorial review
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Tudou Guarantee, an illicit marketplace and escrow service that facilitated over $12 billion in transactions largely from proceeds of scams and frauds, has effectively ceased operations following the arrest this month of an alleged scam tycoon linked to the marketplace.
The marketplace’s activity, which was largely conducted through its public groups on the messaging platform
That was the day after Cambodian authorities arrested Chen Zhi, the chairman of Prince Holding Group, and extradited him to China,
By Jan. 13, the marketplace was effectively inactive.
For U.S. compliance officers and fraud investigators, the collapse of Tudou represents a significant disruption to the infrastructure supporting so-called
The groups behind these schemes launder funds through accounts at American banks before moving them into the crypto ecosystem, according to
In
Tudou Guarantee operated as an illicit service provider, offering escrow services that allowed criminals to buy and sell the tools necessary to commit fraud. Merchants on the platform sold stolen personal data, money-laundering services and pre-built fraudulent investment platforms, according to Elliptic.
The platform also hosted vendors selling deception technology, such as AI-enabled voice cloning tools and face-swapping software, which allowed scammers to impersonate others during video calls with victims.
The marketplace processed over $12 billion in transactions during its lifespan, making it the third-largest illicit marketplace of all time, according to Elliptic data, which dates the marketplace’s activity back to the fourth quarter of 2023.
An interconnected scam economy
Tudou surged in popularity in May 2025 when its predecessor, Huione Guarantee, shut down.
Huione, which had processed over $27 billion in transactions, directed its merchants to migrate to Tudou upon its closure. Huione had previously acquired a 30% stake in Tudou in December 2024, effectively positioning the platform as its successor, according to Elliptic.
Tudou’s wind down appears directly linked to the downfall of Chen and his conglomerate, Prince Holding Group.
The U.S. Treasury Department designated Prince Group as a transnational criminal organization in October 2025, when prosecutors alleged that the operation relied on human trafficking and forced labor to conduct industrial-scale fraud.
Cambodian police arrested Chen and extradited him to China on Jan. 6, according to the Associated Press. U.S. prosecutors had previously charged Chen with wire fraud and money-laundering conspiracies, alleging he masterminded a multinational fraud network that generated millions of dollars daily.
“Prince Group made enormous profits operating scam compounds across Cambodia that perpetrated fraudulent cryptocurrency investment schemes,” prosecutors alleged in
Prince Group “categorically rejects the notion that it or its chairman has engaged in any unlawful activity,” according to a November statement from Chen’s lawyers.
Pressure from prosecutors
Tudou’s disruption comes as U.S. authorities ramp up pressure on the financial networks enabling these scams.
The Department of Justice launched a “Scam Center Strike Force” in late 2025 to target Southeast Asian scam operations, which defraud Americans of nearly $10 billion annually, according to
“Scam centers are creating a generational wealth transfer from Main Street America into the pockets of Chinese organized crime,” said U.S. Attorney Jeanine Ferris Pirro in the release.
While Pirro’s office has so far focused on operations in Cambodia, Laos and Myanmar (also known as Burma), prosecutors allege these groups are affiliates of Chinese criminal groups.
Although Tudou’s public groups have ceased activity, analysts warn that the criminal ecosystem will likely fragment rather than disappear — just as Tudou rose in Huione’s stead.
“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,” the Elliptic report said. “We expect a similar pattern now, with activity dispersing across dozens of guarantee marketplaces we currently track.”