Xinbi Co. Ltd, a Colorado-incorporated company, has been linked to an illicit crypto marketplace called Xinbi Guarantee, which facilitated approximately $8.4 billion in cryptocurrency transactions primarily targeting scammers in Southeast Asia.
The darknet marketplace operated mainly through Telegram, accumulating around 233,000 users before Telegram acted by shutting down many related channels, significantly disrupting its operations. The platform saw rapid growth toward the end of 2024, with transaction volumes surpassing $1 billion in Q4 alone.
Blockchain analytics firm Elliptic provided key insights into Xinbi's involvement, describing the $8.4 billion as a lower bound for the true transaction volume. The illicit activities are also connected with funds stolen by North Korean hackers, raising international security and regulatory concerns.
Despite the sizeable dollar amount involved, no verifiable leadership, legal documentation, or official statements from Xinbi, Colorado authorities, or major crypto exchanges have been confirmed. This has resulted in muted public and institutional reaction.
The closure of the Xinbi Guarantee channels on Telegram and exposure of its scale underscore the vulnerabilities in messaging app-based illicit crypto marketplaces. It also highlights the importance of continued blockchain analytics and cooperation between messaging platforms and authorities to combat cryptocurrency-related crimes.
Overall, the case illustrates significant risks and security challenges in the cryptocurrency ecosystem linked to illicit market operations and regulatory transparency.