UK targets Chinese crypto marketplace amid global crackdown on scam

The United Kingdom has begun investigating a Chinese‑language crypto marketplace known as Xinbi Guarantee after research showed the platform facilitated at least $8.4 billion in transactions, most of which stemmed from crypto‑investment scams [1]. The move follows a broader international effort that includes recent U.S. sanctions on a Cambodian scam network and Telegram’s removal of related channels [2].

Key takeaways

• Xinbi Guarantee, a Telegram‑based marketplace, processed $8.4 billion in illicit crypto flows since 2022 [1].
• The platform, registered in Colorado, offers cash‑out services, money‑laundering, and a range of other criminal services, including harassment‑for‑hire and alleged sex‑trafficking [1].
• Telegram has recently banned the central channels and administrator accounts used by Xinbi Guarantee and a similar market, Huione Guarantee [1].
• The U.S. Office of Foreign Assets Control sanctioned a Cambodian scam network, highlighting the global focus on crypto fraud and related human‑trafficking operations [2].
• It remains unclear how UK authorities will coordinate with existing sanctions and platform bans to disrupt Xinbi Guarantee’s activities [2].

Telegram crackdown and the scale of Xinbi Guarantee

Elliptic, a crypto‑tracing firm, identified Xinbi Guarantee as a “giant, purportedly US‑incorporated illicit online marketplace” that enabled scammers to launder stolen crypto and receive payments in local currencies [1]. The research found that vendors on the platform offered to cash out Tether payments, provide bank accounts in victims’ countries, and even sell stolen data and services such as SIM‑card registration. In one notable case, about $220,000 from a theft of the Indian exchange WazirX was traced to Xinbi Guarantee in November [1].

After Wired alerted Telegram to the illicit activity, the messaging service removed many of the central channels and administrator accounts linked to both Xinbi Guarantee and the earlier‑identified Huione Guarantee [1]. Telegram’s spokesperson said that criminal activities “are forbidden by Telegram’s terms of service and are always removed whenever discovered” [1]. While the bans represent a significant disruption, researchers caution that the operators may attempt to rebuild under new accounts or branding [1].

International sanctions and the broader crackdown

The United States has intensified its response to crypto‑related fraud, recently sanctioning 29 individuals and entities tied to a Cambodian scam network that allegedly defrauded American victims of billions of dollars [2]. The Office of Foreign Assets Control’s actions target senior figures such as Senator Kok An and aim to block U.S. assets and prohibit transactions involving U.S. persons. The sanctions accompany a coordinated law‑enforcement effort that seized over 500 domains linked to fraudulent platforms and disrupted a messaging app used for recruiting trafficking victims [2].