It appears the downturn triggered by the crypto market crash in October last year is not over yet.
The first month of 2026 hasn't even ended, and another popular crypto platform has shut down its operations.
Related: 'Largest online black market' shuts down
Shutdowns and layoffs plague crypto industry
In November 2025, the decentralized application (dApp) analytics platform DappRadar shut down , citing volatile market conditions.
The next month, authorities in Europe shut down Cryptomixer for allegedly facilitating money laundering.
Early this month, the popular crypto exchange OKX decided to cut staff as part of global restructuring.
Then, MANTRA, the blockchain company that witnessed the sharp collapse of its native token OM last year, also decided to reduce its headcount as part of a strategic reset.
Next, Polygon Labs also cut staff in restructuring after acquiring the crypto payment firm Coinme and wallet infrastructure provider Sequence for $250 million.
Now, it has come to light that another crypto marketplace has shut down operations.
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Illicit crypto marketplace shuts down
On Jan. 19, the on-chain analytics platform Elliptic reported that Tudou Guarantee, the Telegram-based illicit crypto marketplace, is shutting down its operations.
Tudou Guarantee emerged as a dominant player in Southeast Asia's scam economy following the shutdown of Huione Guarantee , Elliptic said.
The analytics platform said that its research revealed that the crypto marketplace has effectively ceased transactions through its public Telegram groups following a period of intense growth.
Tudou has processed over $12 billion in transactions since its inception, which makes it the third-largest illicit marketplace of all time, Elliptic said.
Notably, Huione Guarantee acquired a 30% stake in Tudou in December 2024. So, when the former shut down operations, its users migrated to the latter.
As per Elliptic, Tudou merchants offered online fraud and scam operations, such as:
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Crypto-to-fiat conversion for money laundering
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Personally identifiable information (PIN) like documents, bank account details, phone numbers etc. to defraud victims
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Scam infrastructure like fraudulent investment platforms, phishing websites, etc.
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Deception technology like face-swapping software, AI voice cloning tools, deepfakes, etc.
Elliptic said that Tudou Guarantee's escrow service enabled a thriving criminal economy.
Elliptic further claimed that it was the U.S. and U.K. authorities' sanctions against the Prince Group in October last year that led to a sudden drop in activity on Tudou in the next few days.
Though the closure of Tudou is a blow to the Southeast Asian scam economy, Elliptic hinted another player could soon fill the vacuum.
Related: Popular crypto company files for Chapter 15 bankruptcy as Bitcoin crashes
This story was originally published by TheStreet on Jan 23, 2026, where it first appeared in the Bankruptcy News & Analysis section. Add TheStreet as a Preferred Source by clicking here.
