A blockchain security firm has recently identified a Colorado-incorporated company, Xinbi Co. Ltd, that is linked to a Chinese illicit marketplace called Xinbi Guarantee. The marketplace has been reportedly used to channel billions of dollars worth of crypto, primarily in Tether (USDT) stablecoin transactions.
According to a report by Elliptic, Xinbi Guarantee serves as a platform for merchants to sell technology, personal data, and money laundering services to scammers in Southeast Asia. These scammers often target victims using various schemes, including pig butchering scams. The marketplace describes itself as an "investment and capital guarantee group company" and operates through Xinbi Co. Ltd, which was incorporated in Colorado in 2022.
Screenshots provided by Elliptic show that Xinbi Co. Ltd's incorporation status in the US state of Colorado was updated to "Delinquent" in January 2025 for failing to file a periodic report. The illicit marketplace offers services such as money laundering, technology products like Starlink equipment, stolen personal data for targeting victims, and fraudulent documents like fake IDs.
Elliptic researchers have identified thousands of crypto addresses associated with Xinbi Guarantee and its merchants, estimating that the reported $8.4 billion in transactions is likely a conservative figure. The platform, which boasts 233,000 users, operates on a "guarantee model" that requires vendor deposits to prevent fraud.
Xinbi Guarantee is now recognized as the second-largest illicit online marketplace discovered by Elliptic, with transaction volumes rapidly increasing. In the fourth quarter of 2024 alone, over $1 billion was transacted on the platform. Evidence also suggests links between Xinbi Guarantee and North Korean hackers who use the platform for laundering stolen funds.
This discovery follows a similar investigation by Elliptic in July 2024, which exposed another Chinese marketplace, Huione Guarantee, for facilitating over $98 billion in crypto transactions. In early May, Huione Group, the parent company of Huione Guarantee, was designated by the US Treasury as a money-laundering operation and was to be cut off from the US banking system.
Elliptic's research highlights the role of these illicit marketplaces in enabling a "China-based underground banking system" that leverages stablecoins and digital payments for large-scale money laundering operations. The findings shed light on the growing challenges faced by authorities and blockchain security firms in combating financial crimes within the crypto space.
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