The World's Biggest Black Markets Remains Active Despite Regulatory Crackdown

A Chinese-language crypto guarantee service known as Xinbi has reportedly processed $17.9 billion in blockchain transaction volume despite major enforcement efforts and platform bans, according to a new investigation by TRM Labs.

The network’s astonishing resilience underscores the growing sophistication of crypto-enabled laundering operations and their ability to outmaneuver authorities. TRM Labs’ analysis reveals that Xinbi continued operating despite Telegram's regulatory crackdown on similar services back in mid-2025.

So What is the platform’s secret to survival? A rapid migration to alternative messaging apps and the launch of its own crypto wallet, XinbiPay, enabling users to conduct transactions off the radar of regulators. By January 2026, on-chain activity had rebounded sharply, signaling that many of its users had successfully transitioned to the new infrastructure.

According to TRM Labs, Xinbi has been a central hub in the broader crypto laundering ecosystem, facilitating funds tied to cybercrime syndicates and high-profile online scams, including “pig-butchering” fraud schemes common in Southeast Asia.

The firm cautions that the reported $17.9 billion represents gross on-chain volume — encompassing inflows, outflows, and internal transfers — rather than verified illicit proceeds. Nevertheless, this figure underscores the scale of Xinbi’s operations and the sheer volume of money flowing through its network.

“Guarantee services like Xinbi are learning to survive enforcement by fragmenting across platforms and building their own infrastructure. They sit at the center of the scam economy, and dismantling them exposes the networks that depend on them.”

TRM’s report indicates that Xinbi had begun preparing for migration as early as mid-2025, anticipating intensified enforcement actions later that year. The network’s rebound in January coincided with arrests and crackdowns on related laundering rings across Asia, demonstrating the platform’s agility and its ability to outpace regulators.

Xinbi first drew international scrutiny in 2025, when blockchain analytics firm Elliptic reported that wallets linked to the service had received over $8.4 billion in stablecoins, allegedly tied to scams and laundering activity in Southeast Asia.

At the time, investigators described Xinbi as a Telegram-based marketplace offering “guarantee” escrow services for illicit transactions, including money laundering, stolen data, and fraud-enabling tools.

The story of Xinbi is a stark illustration of how illicit crypto networks are evolving. Even as enforcement disrupts one node, new structures emerge to maintain the flow of illicit capital. TRM Labs’ findings highlight a sobering reality: regulators may be reacting to a shadowy crypto empire that continues to adapt and thrive, even under growing global scrutiny.