Massive Crypto Crime Uncovered: Xinbi Telegram Market Linked to $8.4 Billion in Scams

A recent investigation has revealed that the Xinbi Guarantee marketplace on Telegram has facilitated over $8.4 billion in illicit transactions since 2022. This platform, primarily targeting Chinese-speaking users, has become a hub for various cybercrimes, including romance scams and money laundering linked to North Korean hackers.

Key Takeaways:

• Xinbi Guarantee has processed at least $8.4 billion in transactions, primarily using the USDT stablecoin.

• The marketplace offers a range of illegal services, including money laundering, personal data sales, and even sex trafficking.

• Telegram has removed thousands of channels associated with Xinbi and another marketplace, Huione Guarantee, in response to these findings.

• The U.S. Treasury has designated Huione Group as a major money laundering concern, highlighting the scale of these operations.

Overview Of Xinbi Guarantee

Xinbi Guarantee operates as a Chinese-language marketplace on Telegram, providing a platform for cybercriminals to engage in various illegal activities. According to blockchain analytics firm Elliptic, the marketplace has gained notoriety for its extensive range of services, which include:

• Money Laundering: Facilitating the conversion of stolen funds into usable currency.

• Personal Data Sales: Offering databases of stolen personal information to scammers.

• Romance Scams: Supporting schemes that trick victims into sending money under false pretenses.

• Harassment Services: Providing targeted intimidation and harassment for hire.

The Scale Of Operations

Elliptic's research indicates that Xinbi Guarantee has attracted over 233,000 users, with vendors categorized into various illicit services. The marketplace has seen significant growth, with transaction volumes surpassing $1 billion in the last quarter of 2024 alone.

Categories of Services Offered:

1. Money Laundering: Tools and services to clean stolen funds.

2. Fake IDs and Documents: Selling forged identification and other documents.

3. Stolen Data: Access to databases containing personal information.

4. Intimidation Services: Offering harassment and stalking services.

5. Sex Trafficking: Listings for surrogate mothers and sex workers, raising serious ethical concerns.

Telegram's Response

In light of these findings, Telegram has taken action by removing numerous channels associated with Xinbi and Huione Guarantee. This crackdown is part of a broader effort to combat the use of its platform for illegal activities. However, experts warn that these marketplaces may attempt to re-establish themselves under new names or accounts.

Implications For Cybercrime

The emergence of Xinbi Guarantee and similar platforms highlights a troubling trend in the evolution of cybercrime. As traditional darknet markets face increased scrutiny, many criminals are shifting their operations to encrypted messaging apps like Telegram, which offer a level of anonymity and security.

The Xinbi Telegram market's connection to $8.4 billion in crypto crime underscores the urgent need for enhanced regulatory measures and law enforcement efforts to combat cybercrime. As these platforms continue to adapt and evolve, the challenge remains for authorities to keep pace with the rapidly changing landscape of digital crime.

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Sources

• Telegram Torches $8.4B China Crypto Laundering Hubs, Cryptonews.

• An $8.4 Billion Chinese Hub for Crypto Crime Is Incorporated in Colorado, WIRED.

• Xinbi Telegram Market Tied to $8.4B in Crypto Crime, Romance Scams, North Korea Laundering, The Hacker News.