Xinbi Co. Ltd, registered in Colorado, is linked to the illegal platform 'Xinbi Guarantee,' entangled in significant fraudulent schemes using USDT.
Allegations of Fraud
Xinbi Co. Ltd's involvement with the 'Xinbi Guarantee' platform has drawn scrutiny. The company, registered in 2022 and marked as 'delinquent' by Colorado authorities, is associated with $8.4 billion in mainly USDT transactions. This platform actively engages in fraud using technology and personal data, as well as money laundering schemes known as 'pig butchering.'
Impact on the Industry
Concerns about the use of stablecoins for laundering activities are mounting. 'Xinbi Guarantee' is the second-largest illegal online marketplace, with $1 billion in transactions in the fourth quarter of 2024 alone. Despite claims of being an 'investment and capital guarantee group,' its primary role supports significant financial crimes through digital assets.
Regulatory Challenges and Market Reactions
The scale of 'Xinbi Guarantee's illicit activities ranks it among the largest crypto-related crime hubs, alongside historical operations like Hydra. While regulators continue to monitor, federal actions remain unannounced, keeping the industry in uncertainty. Blockchain security firm Elliptic highlights that Xinbi's scale is comparable to major illegal markets historically.
The situation with Xinbi Co. Ltd underscores ongoing risks and regulatory challenges in the crypto industry as forecasts suggest potential regulatory tightening regarding stablecoins.
