Telegram Cracks Down on Suspected $8B Chinese Crypto Crime Marketplace Set Up in Colorado
Telegram’s crackdown on thousands of suspected Chinese crypto-crime marketplaces highlights a burgeoning problem: the use of messaging apps to facilitate illicit activities on an industrial scale. Blockchain analytics firm Elliptic’s report focuses on Xinbi Guarantee, a Colorado-incorporated marketplace operating on Telegram, which has processed over $8.4 billion in transactions since 2022 using Tether’s USDT stablecoin. This platform facilitates various criminal services, including money laundering, operating crypto scam compounds, intimidation, and even sex trafficking.
Elliptic’s research reveals Xinbi is just one of approximately thirty similar Telegram-based marketplaces, all relying on stablecoin payments. These marketplaces are integral to a Southeast Asia-based global cyberscam epidemic, providing scammers with the tools to conduct fraud at an immense scale. Another major player, Huione Guarantee, boasts ties to Cambodia’s ruling family and, along with Xinbi, accounts for a combined $35 billion in illicit transactions. Huione Group was designated a “primary money laundering concern” by the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) in May 2025.
These marketplaces are central to the operation of industrial-scale scam compounds, which lure victims with promises of lucrative IT work before imprisoning and forcing them into online “pig butchering” scams. Xinbi vendors offer services like Starlink satellite internet equipment (commonly used by scam compounds), fake IDs, and databases of stolen personal information to target victims. Money laundering services are also a significant part of their business, processing funds from various sources, including pig butchering scams and even North Korean crypto heists. Elliptic traced approximately $220,000 in USDT from the July 2024 WazirX theft to Xinbi, suggesting the marketplace’s involvement in laundering stolen funds.
Xinbi’s unique aspect is its Colorado incorporation, lending a perceived legitimacy that attracts customers. While registered in Aurora, Colorado, in August 2022, its primarily Chinese-language platform serves primarily Asian fraudsters. The company’s status became delinquent in January 2025 due to failure to file a periodic report. This case underscores the challenges in regulating online criminal activity and the role of seemingly legitimate entities in facilitating illicit operations.
