Reported by Andy Greenberg

(Summary version featured below)

A Telegram-based Chinese-language black market called Xinbi Guarantee has facilitated over $8.4 billion in illicit transactions since 2022, according to new research from crypto-tracing firm Elliptic. Although presented as a legitimate company registered in Colorado, Xinbi operated as a hub for money laundering services tied to crypto investment scams, and even North Korean hackers. Its services included converting stolen funds into cryptocurrency (mostly Tether), cashing them out, and moving money across borders using a network of vendors. Telegram recently removed Xinbi’s channels following inquiries from WIRED, but the platform has previously demonstrated an ability to rebound from bans.

Beyond financial crime, Xinbi’s marketplace offered a disturbing array of illicit services. Elliptic found listings for harassment-for-hire, sex workers (some underage), surrogacy and egg donor services, and stolen personal data. Vendors offered extreme forms of intimidation, such as sending funeral wreaths or individuals with AIDS to targets’ homes. Elliptic even uncovered transactions linked to a 2024 crypto exchange hack attributed to North Korean cybercriminals. Xinbi’s “guarantee” model, which required deposits from vendors, enabled a large underground economy to thrive while posing as a legitimate U.S. business.

Xinbi is the second major Chinese-language crime platform uncovered by Elliptic, following Huione Guarantee, which facilitated over $24 billion in similar activities. Both used Telegram for communication and Tether for transactions, creating what researchers describe as a growing Chinese-language “darknet.” While Telegram and Tether have started cracking down, Elliptic warns that the financial rewards are too large for these operations to simply disappear. As law enforcement and tech platforms play catch-up, dozens of similar marketplaces remain active, revealing the scale and resilience of transnational crypto crime.

Read full report: https://www.wired.com/story/xinbi-guarantee-crypto-scam-hub/