Xinbi Guarantee: Analyzing the Growth of a $8.4 Billion Illicit Crypto Marketplace Using Tether (USDT)

The cryptocurrency landscape faces scrutiny as Elliptic uncovers Xinbi Guarantee, a platform implicated in $8.4 billion of illicit transactions. This Colorado-based marketplace has witnessed a staggering 95.8% user growth, highlighting its role in cybercrime. “Xinbi Guarantee is crucial for online criminals,” noted Elliptic, emphasizing its reach in illicit services. Elliptic’s findings reveal Xinbi Guarantee’s significant role in cybercrime, handling $8.4 billion in illegal crypto since 2022. Discover the implications. Xinbi Guarantee: Exposing the $8.4 Billion Crypto Crime Marketplace According to Elliptic’s investigation, Xinbi Guarantee predominantly employs the stablecoin Tether (USDT) for transactions. In Q4 2024, inflows exceeded $1 billion, underscoring the platform’s rapid expansion and growing influence within illicit crypto markets. Inflow of Crypto Assets into Xinbi Guarantee Linked Addresses. Source: Elliptic Research Furthermore, significant user growth has been observed. Xinbi’s users skyrocketed by 95.8%, increasing from 119,000 in August 2024 to 233,000 as of the latest data. “According to our analysis, Xinbi Guarantee is already the second-largest illicit online market to have ever operated,” remarked Elliptic. The platform’s infrastructure categorizes merchants into nine categories, with money laundering representing the bulk of transactions. Operators function as a laundering mechanism for proceeds of fraud, notably linked to incidents such as the WazirX hack. According to Elliptic, on November 12, 2024, Xinbi Guarantee addresses received around $220,000 in USDT in nine transactions, revealing the platform’s role in laundering the proceeds from this high-profile heist. WazirX’s Stolen Crypto Funds Sent to Xinbi Guarantee Marketplace. Source: Elliptic Research Additionally, vendors on Xinbi offer a wide range of illicit services, including the sale of stolen personal data, counterfeit IDs, and fraudulent documentation. These materials are frequently utilized in targeting victims. The marketplace’s offerings extend to advanced technology, such as Starlink devices, to enhance the effectiveness of scams. Furthermore, more alarming services are on offer, including targeted harassment-for-hire and access to surrogates and egg donors, with ties to sex trafficking. Despite primarily serving Chinese-speaking criminals, Xinbi Guarantee is legally registered in Colorado, USA, a detail it prominently showcases on its website. “The Colorado corporate register affirms that ‘Xinbi Co., Ltd’ was incorporated in August 2022, with its principal office in Aurora, CO. In January 2025, the corporation was designated as ‘Delinquent’ for failing to file the required periodic report,” the investigation underscored. This incorporation status has raised significant concerns regarding regulatory oversight and the potential exploitation of regulatory frameworks to facilitate illegal operations. Xinbi Guarantee’s exposure continues a pattern of illicit marketplaces uncovered by Elliptic, following the analysis of Huione Guarantee’s activities disclosed in July 2024. Elliptic’s latest findings have propelled Telegram to ban several channels associated with Xinbi Guarantee and Huione Guarantee, marking a noteworthy crackdown on these digital black markets. Conclusion The rise of Xinbi Guarantee as a major player in illicit crypto transactions serves as a stark reminder of the challenges facing regulatory bodies in tracking and mitigating cybercrime. With $8.4 billion linked to illegal activities, the crypto industry must prioritize transparency and security to restore trust and combat these emerging threats.