Xinbi Guarantee, registered in Colorado, has emerged as one of the largest markets for illicit cryptocurrency operations, processing $8.4 billion since 2022.
Overview of Xinbi Guarantee
The Xinbi Guarantee platform, primarily operating through Telegram channels, has established itself as one of the largest illicit online markets. According to Elliptic, the user count grew from 119,000 to 233,000 between August and November 2024. In Q4 2024 alone, the platform processed over $1 billion in illicit cryptocurrencies, making it a notable player in the global cybercriminal scheme.
Services and North Korean Connection
The platform offers a wide array of services, including money laundering and harassing for-hire operations. Elliptic also documented Xinbi Guarantee's ties to laundering funds stolen during major cryptocurrency hacks, including $235 million from the Indian exchange WazirX. Vendors sell stolen personal data, counterfeit identification documents, and systems designed to support various scam operations.
Regulatory Response and Situation Review
The establishment of Xinbi Guarantee as a registered company in Colorado raises concerns about regulatory oversight and the possibility of enforcement measures. Following Elliptic's report, Telegram banned several channels associated with both Xinbi Guarantee and the similar platform Huione Guarantee, representing a significant blow to the marketplace's communication infrastructure. Despite this, transaction volumes continue to rise, highlighting the challenges faced by regulators and law enforcement agencies.
The controversy surrounding Xinbi Guarantee demonstrates how criminal enterprises utilize legitimate business registrations alongside cryptocurrency technology to conduct large-scale illicit operations. This underscores the challenges faced by regulators and law enforcement agencies worldwide.
