Xinbi Guarantee Facilitates $8.4 Billion in Illicit Crypto Transactions

Elliptic, a blockchain security firm, has identified a significant illicit cryptocurrency marketplace called Xinbi Guarantee, which has been incorporated in Colorado. The platform has facilitated approximately $8.4 billion in transactions, primarily in Tether (USDT) stablecoin. Xinbi operates as a Chinese-language, Telegram-based marketplace, offering services such as technology, personal data, and money laundering services to scammers, particularly in Southeast Asia. The platform's services include money laundering, stolen personal data, and fraudulent documents, with money laundering being the largest category.

Xinbi describes itself as an “investment and capital guarantee group company” and claims to operate through Xinbi Co. Ltd, a Colorado-incorporated company established in 2022. However, the corporation was updated to ‘Delinquent’ in January 2025 for failing to file a periodic report. The platform has 233,000 users and operates on a “guarantee model,” requiring vendor deposits to prevent fraud. Elliptic identified thousands of crypto addresses used by Xinbi Guarantee and its merchants, stating that the $8.4 billion in transactions should be considered as lower bounds of the true volume of transactions on the platform.

Xinbi is the second-largest illicit online marketplace discovered so far, with transaction volume growing rapidly. In the fourth quarter of 2024, over $1 billion was transacted, and evidence links the platform to North Korean hackers laundering stolen funds. The platform provides a window into a China-based underground banking system, leveraging stablecoins and other digital payments for money laundering on a significant scale.

This discovery follows the exposure of a similar Telegram-based Chinese marketplace known as Huione Guarantee in July 2024. The wider Huione Group of companies had facilitated over $98 billion in crypto transactions and was designated by the US Treasury as a money-laundering operation in early May. The designation aimed to sever the platform from the US banking system.

The revelation of Xinbi's operations underscores the challenges faced by regulatory bodies and law enforcement agencies in monitoring and controlling the decentralized nature of cryptocurrencies. The platform's incorporation in Colorado, a state known for its progressive stance on blockchain technology, raises questions about the effectiveness of current regulatory frameworks in preventing such illicit activities. The $8.4 billion figure serves as a stark reminder of the scale at which criminal activities can operate within the cryptocurrency ecosystem.

The illicit activities facilitated by Xinbi are part of a broader trend of cybercrime leveraging cryptocurrencies. The anonymity and decentralization of cryptocurrencies make them an attractive tool for criminals seeking to evade detection and regulation. This discovery by Elliptic underscores the need for enhanced regulatory measures and technological solutions to combat such illicit activities.

The revelation of Xinbi's operations also highlights the importance of blockchain analytics firms like Elliptic in identifying and exposing illicit activities within the cryptocurrency space. Their expertise in tracking and analyzing blockchain transactions is crucial in the fight against cybercrime. The discovery of Xinbi serves as a wake-up call for regulators, law enforcement agencies, and the cryptocurrency community to work together in developing more robust measures to prevent and mitigate the risks associated with illicit cryptocurrency markets.