Elliptic Unveils $8.4 Billion Xinbi Market Scams on Telegram – Coincu

Xinbi Co. Ltd, registered in Colorado, is connected to “Xinbi Guarantee,” a Telegram-based illegal market linked to $8.4 billion in crypto transactions.

The market, focusing on Southeast Asia, operates largely through USDT transactions and is involved in facilitating scams and money laundering.

Elliptic Report Uncovers $8.4B Xinbi Operations

Elliptic disclosed that Xinbi Co. Ltd is tied to the illegal market “Xinbi Guarantee,” known for processing $8.4 billion through services including scams and laundering. Xinbi is reportedly linked to North Korean hackers’ laundering schemes. It registered in Colorado in 2022 but was marked as “non-compliant” for not filing reports. You can verify their business registration status on the SCJ Government Business Verification for Registration.

The increased attention to Telegram’s role in illegal activities prompts encryption law debates. Telegram has tackled the issue by removing thousands of channels associated with such markets, effectively curtailing Xinbi’s reach within Southeast Asia. Elliptic noted on their blog, “Telegram has responded to Elliptic’s research by closing thousands of channels belonging to both Xinbi Guarantee and Huione Guarantee, severely disrupting the two largest Telegram-based illicit marketplaces.”

Reactions from authorities remain reserved, yet Telegram’s crackdown indicates industry vigilance. This suggests significant law-enforcement collaboration, although financial authorities have not yet prioritized the case publicly.

Regulatory Challenges and Stability of USDT Amidst Scams

Did you know? The “guarantee model” used by Xinbi Guarantee is reminiscent of similar black-market structures in Asia, like “Huione Guarantee,” marking a persistent challenge in curbing cross-border crypto transaction fraud.

CoinMarketCap reports Tether USDt (USDT) maintains a price of $1.00, with a market cap of $150.33 billion and a 24-hour trading volume of $104.67 billion, down 18.47%. The coin experienced minimal price changes over the past months, reflecting stability amidst regulatory scrutiny.

Insights from the Coincu research team suggest enhanced regulatory oversight could reduce money laundering vulnerabilities. Blockchain’s immutable nature may aid in tracing suspicious transactions, but obfuscated operations like Xinbi require ongoing technological advances to effectively counteract illicit marketplaces.