According to the blockchain analysis company Elliptic's latest investigation, a Telegram trading community called "Xinbi Guarantee" has been using a Colorado, United States registration as a cover to massively provide fraud tools and money laundering services in Southeast Asia. The platform uses Telegram as its primary communication tool, and has received over $8.4 billion in USDT crypto funds, with some funds traceable to North Korean hacker operations and "pig butchering" scams. As Telegram has recently closed thousands of related channels, only the tip of the iceberg of this underground economic network has begun to emerge.
After the early Dark Web markets like Silk Road and AlphaBay disappeared, Telegram is rapidly replacing the Tor browser as the new generation of illegal trading platform. Another Telegram market "Huiwang Guarantee" previously exposed by Elliptic had a total transaction amount of $27 billion, and this newly exposed "Xinbi Guarantee" is not far behind, with user numbers surging from 119,000 in August 2024 to 233,000 currently. Both use Chinese and USDT as the primary payment method, specifically serving Southeast Asian fraud groups.
The merchants in Xinbi Guarantee are divided into nine categories, with four categories specifically handling money laundering services, openly listing processable fund sources such as "pig butchering scams" and "chat fraud". Other items for sale include Starlink satellite network equipment, fake documents, stolen personal information databases, and even services like sexual transactions, surrogate motherhood, and illegal monitoring services. Some services even involve forced labor and underage sexual exploitation, with victims as young as 14.
According to Elliptic's analysis, the platform and merchant crypto wallets have cumulatively received over $8.4 billion in USDT since 2022. Particularly in the fourth quarter of 2024, the platform's single-quarter inflow exceeded $1 billion for the first time, showing an astonishing growth rate. These transaction scales have already surpassed the Dark Web era's Silk Road, second only to Huiwang Guarantee, becoming the second-largest illegal crypto market in history.
Surprisingly, this transnational illegal market is registered in the United States. According to inquiries, Xinbi Co., Ltd was established in Colorado in August 2022, with a registered office in Aurora. However, as of January 2025, the company has been marked as "overdue" by the state government for not submitting reports. Nevertheless, this legal company facade undoubtedly adds a layer of protection for international fund circulation.
Elliptic further discovered that some funds from North Korean hacker operations also flowed into Xinbi Guarantee. In July 2024, the Indian exchange WazirX was hacked, losing $235 million, which Elliptic believes is related to North Korea. The investigation showed that after passing through decentralized exchanges and cross-chain bridges, $220,000 in USDT was tracked to Xinbi Guarantee-related addresses, split into 9 transactions, indicating that platform merchants are suspected of providing money laundering services for the hacker organization.
Huiwang and Xinbi Guarantee are not just breeding grounds for fraud, but also reveal a Chinese underground banking system based on stablecoins and digital payments. These platforms provide a complete ecosystem for global fraud industries, covering everything from personal information to fund transfers. Elliptic is currently tracking over 30 similar platforms and calls on exchanges and stablecoin issuers to strengthen wallet monitoring to block such fund flows.
The Xinbi Guarantee incident shows how digital financial tools are manipulated by criminals to build transnational fraud kingdoms. Facing such an underground economic network, platform monitoring alone is far from sufficient.
Cryptocurrency investment carries high risks, with potentially significant price volatility, and you may lose all of your principal. Please carefully assess the risks.
Whenever the cryptocurrency market is booming and price surge topics are rampant, a bunch of "teachers" will seize the opportunity to appear and start teaching everyone how to follow trades, showcase trades, and report trades. Not only do they add users to groups, but they also use fake accounts and fake conversations, coupled with a "trade slip generator", making you believe everyone is making a fortune, causing you to FOMO and shout: "Why didn't I follow the trade!" Unknowingly, you get scammed.
Market Looks Bullish, Trade Reporting Groups Become Active
Starting from the end of 2024, after Trump voiced support for the crypto industry before the US presidential election, the prices of mainstream cryptocurrencies like BTC and ETH have significantly rebounded, and investment sentiment has warmed up.
Amid the optimistic market atmosphere, social platforms and communication apps like FB, IG, LINE, and Telegram are flooded with trade showcase and reporting groups, promoting:
"Teachers will help you earn passively", "One-on-one teaching", "Low risk, high returns".
In these groups, you'll see many people posting deposit and withdrawal screenshots and profit trades, making it hard not to be tempted. However, in reality, these images are mostly fake, and even generated with a single click.
Fake Teachers, Fake Conversations, All Relying on "Trade Slip Generator"
There's already an online "trade slip generator" tool where you need to input the following conditions to become a "teacher":
- Cryptocurrency
- Leverage Multiplier
- Opening Price
- Closing Price
- Trading Direction
- Name
- Date
- Avatar Upload
- Invitation Code
... [rest of the translation continues in the same manner]
