Synopsis: Chinese crypto platform Xinbi handled $17.9 billion in trades despite global bans. It switched apps after Telegram block and launched its own wallet to keep scams and laundering going.
A Chinese-language cryptocurrency marketplace has moved nearly $18 billion in digital assets despite widespread bans and enforcement efforts. Xinbi, a crypto guarantee service, continued operations by rapidly shifting to new platforms and launching its own payment system. The findings come from TRM Labs, a blockchain analytics firm that tracks illicit cryptocurrency activity.
The staggering volume highlights how underground crypto services adapt to survive. While authorities shut down competitors and banned communication channels, Xinbi found ways to keep running. The platform serves as a middleman for crypto transactions, many linked to scams and money laundering operations across Southeast Asia.
Telegram Ban
Telegram banned Chinese-language guarantee services in early 2025. The crackdown targeted major platforms including Xinbi and its competitors. However, Xinbi quickly moved operations to alternative messaging apps. The platform promoted SafeW, a secure messaging service, as its new coordination hub.
In December 2025, Xinbi launched XinbiPay, also called NewPay. This new wallet service allowed the platform to process transactions independently. According to TRM Labs, wallet activity rebounded sharply in January 2026. Users successfully transitioned to the new setup, maintaining the platform’s transaction flow.
The $17.9 billion figure represents gross transaction volume, not pure criminal proceeds. This includes money flowing in, out, and internally within Xinbi’s system. TRM Labs clarifies that guarantee services often recycle funds internally. Therefore, the actual illicit gains remain unclear from volume alone.
How Crypto Guarantee Services Enable Crime
Xinbi operates as an informal escrow marketplace for Chinese-speaking users. The platform connects people buying and selling crypto services with minimal oversight. Vendors post security deposits to gain platform access. These deposits range from thousands to tens of thousands in stablecoins.
The service requires almost no customer verification. Buyers and sellers interact in monitored chat rooms. Platform administrators hold funds until both parties confirm the transaction. Disputes get resolved by deducting money from vendor deposits.
Xinbi has hosted listings for various illegal services. These include money laundering, stolen data, fake identification documents, and scam tools. The platform has clear connections to pig-butchering fraud operations. These romance scams trick victims into fake investment schemes, stealing billions globally.
Ari Redbord leads policy efforts at TRM Labs. He explained that guarantee services now build their own infrastructure to survive. “These services sit at the center of the scam economy,” Redbord stated. Removing them from the laundering chain exposes entire criminal networks.
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Competitors Fall While Xinbi Captures Market Share
Recent enforcement actions targeted multiple guarantee platforms. In May 2025, the U.S. Treasury designated Huione Guarantee and Haowang Guarantee as money laundering concerns. This marked the first major American action against Chinese-language crypto marketplaces.
Both platforms attempted moving to ChatMe, another messaging app. However, they faced limited user adoption and additional shutdowns. Transaction volumes for Huione and Haowang dropped 100 percent. Tudou Guarantee, another competitor, declined roughly 74 percent before closing in January 2026.
Tudou’s closure followed the arrest of Chen Zhi, chairman of Prince Group. His operations used guarantee services to launder scam proceeds. On the other hand, Xinbi absorbed displaced users from failing platforms. Transaction inflows nearly doubled between May and December 2025.
TRM Labs tracked Xinbi-linked wallets processing at least $16.4 billion since 2022. The platform received $8.9 billion in total inflows. XinbiPay showed rapid adoption after launching in late December. The new wallet system helped internalize transactions, making them harder to trace.
Ongoing Challenges in Fighting Crypto Crime
Previous reports had already flagged Xinbi’s massive stablecoin flows. In May 2025, blockchain firm Elliptic identified over $8.4 billion in stablecoins. These funds connected to money laundering and scam activity throughout Southeast Asia.
Xinbi claimed registration with U.S. and Canadian financial authorities. However, registration does not prevent platforms from facilitating illegal transactions. The low barriers to entry attract criminals seeking quick, anonymous fund transfers.
Enforcement efforts have fragmented the guarantee service ecosystem. Platforms now spread across multiple messaging apps and build independent payment systems. This adaptation demonstrates the resilience of crypto-enabled crime infrastructure.
TRM Labs recommends prioritizing guarantee services for maximum disruption impact. These platforms function as central coordination points for criminal activity. Investigating their internal wallet systems could improve tracking capabilities. Additionally, actions that erode user trust may drive down platform usage.
The report emphasizes that crackdowns reshape but do not eliminate these services. Continuous monitoring remains essential as platforms evolve. Breaking down communication channels and causing fund losses reduces criminal confidence. This exposure creates better opportunities for law enforcement intervention.
Written by Fazal Ul Vahab C H
