A firm registered in Colorado has been implicated in an expansive crypto-fueled black market operation serving Southeast Asian scammers, according to a report by blockchain security firm Elliptic.
The marketplace, known as Xinbi Guarantee, has facilitated at least $8.4 billion in mostly Tether (USDT) transactions to date. Operated via Telegram and catering primarily to Chinese-speaking users, Xinbi sells illicit services including money laundering, stolen personal data, fraudulent identification documents, and technology like Starlink equipment—tools commonly used in sophisticated pig butchering scams that target individuals across Southeast Asia.
Elliptic’s investigation, published on May 13, reveals that Xinbi Guarantee operates under the guise of Xinbi Co. Ltd., a company incorporated in Colorado in 2022. The firm was marked “Delinquent” in January 2025 for failing to submit a required periodic report, raising questions about its compliance and legitimacy.
Described as the second-largest known crypto-powered illicit marketplace, Xinbi saw over $1 billion in activity in Q4 2024 alone. Researchers say there’s mounting evidence linking the platform to North Korean hackers known for laundering stolen digital assets.
Elliptic uncovered thousands of cryptocurrency wallet addresses connected to Xinbi and its vendors, noting that the reported $8.4 billion is likely a conservative estimate. The platform currently boasts a user base of over 233,000 and enforces a “guarantee model,” where vendors must place deposits to reduce fraud among participants.
Xinbi is the latest in a series of illicit Chinese-language marketplaces to come under scrutiny. In July 2024, Elliptic exposed Huione Guarantee, another Telegram-based network. The wider Huione Group was found to have handled over $98 billion in crypto transactions. Earlier this month, the U.S. Treasury officially labelled the group a money laundering operation and ordered its disconnection from the American financial system.
Elliptic warns that these platforms form part of a vast, China-based underground banking network increasingly relying on stablecoins and digital payments to conduct illicit financial operations at scale.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
