US Disrupts Xinbi Guarantee Marketplace, Seizes $52.8 Million in Cybercrime Crackdown
The U.S. government has dismantled the Xinbi Guarantee marketplace, a major Telegram-based platform facilitating billions in illicit transactions for cyber scams and other criminal activities.
The U.S. government has taken decisive action against the Xinbi Guarantee marketplace, a significant Telegram-based platform that has fueled a global cybercrime economy. In a coordinated operation, authorities announced sanctions against the Chinese-language marketplace and two associated businesses, alongside the seizure of $52.8 million from 52 cryptocurrency wallets linked to its operations. This move, supported by the U.K. which previously sanctioned the platform, aims to cripple the infrastructure supporting a wide array of illicit activities.
Launched in 2022, Xinbi Guarantee rapidly became one of the largest illicit online marketplaces in history, processing an estimated $24 billion in transactions. It served as a critical hub for cybercriminals, particularly in Southeast Asia, offering a comprehensive suite of services essential for conducting large-scale scams. The marketplace operated as an escrow service, ensuring payments between buyers and sellers of illegal goods and services, primarily using Tether's USDT stablecoin.
The platform's offerings were extensive, ranging from money laundering services and the sale of stolen personal data to the provision of sophisticated tools like deepfake technology. Vendors utilized its Telegram channels to advertise and conduct business, catering to a diverse criminal clientele. Xinbi Guarantee emerged as a successor to the Huione Guarantee marketplace, which was shut down following international pressure, indicating a persistent demand for such centralized criminal infrastructure.
According to cyber intelligence firm DarkTower, Xinbi hosted over 4,600 crime-as-a-service vendors shortly before the U.S. government's intervention. The operation was spearheaded by the DOJ's Scam Center Task Force, an interagency initiative focused on combating cyber scams orchestrated by Chinese organized crime groups. With assistance from blockchain intelligence firm Elliptic and cooperation from Tether, the task force successfully seized millions in cryptocurrency, including funds directly linked to vendor payments and money laundering operations.
In response to the freezing of USDT funds, Xinbi administrators reportedly announced a shift to USDD, a stablecoin on the TRON blockchain, citing difficulties with Tether's compliance processes. This move highlights the ongoing cat-and-mouse game between law enforcement and cybercriminals seeking to evade detection and asset seizure. Despite the challenges, experts anticipate Xinbi may attempt to relaunch, though sanctions will make this significantly more difficult.
The U.S. government also targeted entities accused of supporting Xinbi's operations: Anwen Technology, developer of the XinbiPay cryptocurrency app, and SafeW Technology Co., which allegedly provided encrypted messaging services for the marketplace's networks. These sanctions underscore a broader strategy to dismantle the entire ecosystem supporting cybercriminal enterprises.
Furthermore, the DOJ revealed its Scam Center Task Force is expanding its global reach, deploying teams to locations like Madagascar to dismantle scam compounds and apprehend alleged leaders. This operation resulted in the takedown of 13 scam centers and numerous arrests, with apprehended individuals reportedly repatriated to China. The disruption of Xinbi Guarantee represents a significant blow to the organized cybercrime economy.
The U.S. Department of Justice announced further actions beyond the initial seizure, including the deployment of the Scam Center Strike Force to Madagascar to dismantle 13 scam compounds operated by Chinese organized crime syndicates. These compounds were linked to the Xinbi Guarantee marketplace, highlighting the physical infrastructure supporting these illicit online operations. Additionally, the Treasury Department's Office of Foreign Assets Control (OFAC) has sanctioned Chinese-language media outlets for their role in facilitating cyber scams and money laundering targeting Americans, broadening the scope of the crackdown beyond just the marketplace and its associated cryptocurrency.