Illicit $8 Billion Crypto Marketplace Xinbi Incorporated in Colorado, Reports Elliptic
A report by blockchain security firm Elliptic has revealed that a Colorado-incorporated firm named Xinbi Guarantee is linked to a significant illicit cryptocurrency marketplace, which has reportedly facilitated over $8.4 billion in transactions primarily through stablecoins like Tether (USDT). The activity, centered on Southeast Asia, raises urgent concerns about money laundering and scamming operations.
Overview of Xinbi Guarantee
Xinbi Guarantee is connected to a marketplace that operates predominantly in the Chinese language and is based on the messaging platform Telegram. The services offered on this marketplace include technology solutions, personal data trading, and money laundering services aimed at fraudsters in Southeast Asia. These scams are known as "pig butchering" schemes, where perpetrators lure victims into investing large sums under false pretenses.
On its official website, Xinbi claims to operate as an "investment and capital guarantee group company" through its entity, Xinbi Co. Ltd., which was established in Colorado in 2022. However, Elliptic reported that as of January 2025, Xinbi Co. Ltd was designated as "Delinquent" for its failure to submit a periodic report required for maintaining good standing.
Growth and Operation of Xinbi Marketplace
Elliptic’s findings highlight that Xinbi is the second-largest illicit online marketplace uncovered to date, with a rapidly growing transaction volume. Specifically, in the fourth quarter of 2024, Xinbi recorded over $1 billion in transactions. Elliptic’s analysis suggests the platform may also be associated with North Korean hackers involved in laundering stolen funds.
The research firm identified a significant number of cryptocurrency addresses linked to Xinbi Guarantee and its merchants, positing that the reported $8.4 billion in transactions represents a conservative estimate of the actual activity on the platform. The marketplace claims to have about 233,000 users and operates under a "guarantee model," which requires vendors to provide deposits to mitigate fraud risks.
Comparison with Huione Guarantee
In July 2024, Elliptic released an investigation into another similar Telegram-based marketplace, Huione Guarantee, which was found to have facilitated over $98 billion in cryptocurrency transactions. The U.S. Treasury designated Huione as a money-laundering operation, leading to measures to disconnect it from the U.S. banking system.
The report emphasizes that both Xinbi and Huione operate within a broader “China-based underground banking system” that utilizes stablecoins and other forms of digital payments for significant money laundering activities.
Conclusion
The revelations surrounding Xinbi Guarantee underscore the pressing issues associated with the intersection of cryptocurrency and illicit activities, particularly in Southeast Asia. As regulatory bodies keep a wary eye on such market dynamics, the operational mechanisms of these platforms continue to present challenges for enforcement and oversight in the rapidly evolving digital currency landscape.
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