Colorado Firm Linked to $8.4B Illicit Crypto Marketplace

Xinbi Co. Ltd, a Colorado-incorporated company, is linked to the illicit marketplace Xinbi Guarantee, facilitating $8.4 billion in crypto transactions primarily for Southeast Asia scammers.

The exposure of Xinbi Co. Ltd.’s involvement in illicit crypto activities highlights significant concerns over cryptocurrency misuse, drawing attention to security measures.

Xinbi Guarantee Operations

Xinbi Guarantee, operated by the Colorado-based Xinbi Co. Ltd, processed approximately $8.4 billion in crypto transactions. The platform showed rapid expansion in Q4 2024, reaching over $1 billion in transactions.

“The $8.4 billion figure should be considered as lower bounds of the true volume of transactions on the platform.” — Elliptic Blockchain Analyst, Elliptic Elliptic Report

The marketplace primarily operated through Telegram, where it amassed around 233,000 users. On being exposed, Telegram acted by closing many channels, impacting the marketplace’s operations significantly.

Security Concerns and Implications

The closure of Xinbi Guarantee’s channels highlights ongoing vulnerabilities in using messaging apps for such activities. There may be some collaboration between authorities and Telegram to tackle these issues.

Financial transactions linked to the marketplace have been connected to funds stolen by North Korean hackers. This suggests broader implications for international security and regulatory policies.

The continued tracking of marketplaces like Xinbi is crucial for understanding cryptocurrency-related crimes. The involvement of blockchain analytics firms offers insights into further potential regulatory or technological responses.