Telegram Closes Channels Linked to Chinese Crypto-Crime Marketplaces
Messaging app Telegram has recently taken significant action by closing thousands of channels associated with suspected Chinese crypto-crime marketplaces. This move comes in response to new research from the blockchain analytics firm Elliptic, which revealed the extent of illicit activities facilitated through Telegram.
Investigation into Xinbi Guarantee
The crackdown follows a comprehensive report published by Elliptic, which focused on the rapidly expanding Telegram-based marketplace known as Xinbi Guarantee. This platform has processed transactions exceeding $8.4 billion in value using Tether’s USDT stablecoin since 2022. Xinbi is notorious for enabling services related to money laundering, crypto scams, and various other illegal activities such as intimidation and sex trafficking.
Elliptic’s recent findings highlight the alarming trend where around thirty similar marketplaces leverage Telegram’s platform alongside stablecoin payments to conduct their activities. While Telegram has yet to provide a public comment on this matter, the implications of these findings underscore a critical issue in the battle against cybercrime.
The Role of Telegram in the Cyberscam Epidemic
Marketplaces like Xinbi and others have become central to an emerging cyberscam epidemic that is particularly prevalent in Southeast Asia. These platforms provide scammers with the essential tools to execute fraud on an industrial scale. For instance, victims are often lured in with promises of lucrative job opportunities in IT. However, upon arrival at scam compounds, they find themselves trapped, facing threats, and coerced into perpetrating online scams like pig butchering to settle fabricated debts.
According to Elliptic, vendors operating on Xinbi frequently offer equipment such as Starlink satellite internet, which is utilized within these scam compounds. Other illicit offerings include fake IDs and databases of stolen personal information that are essential for targeting and deceiving potential victims.
Money Laundering Operations
In addition to scams, the report highlights that money laundering services constitute a significant portion of business on these platforms. Particularly, these services are employed to wash the proceeds of various scams, including those from North Korean cyber heists. Elliptic discovered that approximately $220,000 in USDT from a $230 million theft related to WazirX was directed to Xinbi, signaling that the marketplace was likely used to launder the stolen funds.
Despite the growing evidence, it remains uncertain whether actual North Korean operatives are directly engaging with vendors on Xinbi. Elliptic’s chief scientist, Tom Robinson, hypothesized that by the time such funds enter marketplaces like Xinbi, they are typically under the control of Chinese money laundering groups.
Xinbi’s Colorado Connection
What makes Xinbi particularly noteworthy is its purported connection to the United States. The marketplace claims to be an “investment and capital guarantee group company” established as a Colorado-based corporation. Records reveal that a company named “Xinbi Co., Ltd” was incorporated in August 2022, with official documentation showing an address in Aurora, Colorado. Despite this, the primary user base remains within Asia, where fraudsters exploit the platform.
Robinson pointed out that trust is a crucial element for marketplaces that operate in the shadows of legality. The U.S. incorporation lends a layer of legitimacy that can attract customers. This trust is critical, especially when many similar platforms have been known to execute exit scams, allowing them to walk away with customer funds while ceasing to fulfill orders.
However, in January 2025, Xinbi’s business status was updated to a delinquent classification after failing to file a required periodic report—raising more questions about the authenticity and operations of the marketplace.
Conclusion
The measures taken by Telegram to dismantle channels associated with these notorious crypto-crime marketplaces reflect a broader effort to combat cybercrime on a global scale. While platforms like Xinbi and Huione Guarantee continue to operate, shedding light on their activities is essential in understanding the extent of the cyberscam epidemic. The challenges posed by illicit online activities require a coordinated response from platforms, regulatory bodies, and law enforcement agencies to protect potential victims worldwide.