Crypto Crime Spreads: Xinbi Guarantee Exposed
The crypto world is grappling with a new illicit player. Xinbi Guarantee, a firm incorporated in Colorado, has been revealed as the backbone of a Chinese black marketplace facilitating billions of dollars in illicit crypto transactions. The discovery, made by blockchain security firm Elliptic, sheds light on the alarming rise of organized criminal activity leveraging cryptocurrency for nefarious purposes.
According to Elliptic‘s report, Xinbi Guarantee has seen over $8.4 billion flow through its platform, predominantly in Tether (USDT) stablecoin transactions. The marketplace, operating through a Telegram channel, serves as a hub for Southeast Asian scammers targeting victims with sophisticated ‘pig butchering’ scams.
A Black Market Hub: Xinbi’s Offerings
The platform’s offerings are as diverse as they are illicit. Merchants on Xinbi peddle a range of products and services catering to the demands of scammers:
- Money Laundering Services: The most prominent category, providing criminals with a way to obfuscate the origins of ill-gotten gains.
- Technology: Equipment such as Starlink satellite internet terminals are sold, facilitating remote operations for scammers.
- Stolen Personal Data: This data is used to target potential victims with greater precision, increasing the effectiveness of scams.
- Fake IDs and Fraudulent Documents: These tools aid in concealing identities and perpetrating further fraudulent activities.
The platform’s business model relies on a ‘guarantee’ system. Vendors are required to make deposits to ensure the integrity of transactions and protect buyers from fraud. This mechanism has contributed to the platform’s success, attracting over 233,000 users.
Xinbi: Second Largest, Rapidly Growing
Xinbi Guarantee is the second-largest illicit online marketplace discovered to date, highlighting the scale and sophistication of this emerging threat. Transactions on the platform have grown significantly, exceeding $1 billion in Q4 2024 alone. Evidence suggests that the platform is even linked to North Korean hackers attempting to launder stolen funds.
Elliptic, the firm behind the discovery, emphasizes that the $8.4 billion transaction volume is likely a conservative estimate. The true scope of Xinbi’s operations could be far greater.
Crypto Crime: A Growing Concern
The emergence of Xinbi Guarantee underscores the escalating challenge of illicit crypto activity. This case exemplifies how organized criminal networks are leveraging cryptocurrency to facilitate a range of criminal enterprises. The platform serves as a window into the increasingly interconnected world of illicit crypto markets, highlighting the need for robust regulatory frameworks and enhanced security measures to counter these threats.
The exposure of Xinbi and its predecessor, Huione Guarantee, also reveals the growing importance of stablecoins in the crypto-based underground banking system. These platforms highlight how stablecoins can be exploited for large-scale money laundering operations, posing a significant challenge to the broader crypto ecosystem.
The crypto community must be vigilant in addressing these threats. Continued collaboration between security firms, law enforcement agencies, and the crypto industry itself is crucial to combating illicit crypto activity and ensuring the integrity of the digital asset landscape.
