Elliptic Unveils Xinbi Guarantee's $8.4 Billion USDT Scams
Key Points:Elliptic investigates Xinbi’s $8.4 billion USDT illicit operations.Telegram-based market disrupted, highlights cross-border crypto crimes.Investigation impacts USDT reliability, calls for stronger regulations. Elliptic, a blockchain security firm, revealed on May 14 that Xinbi Co. Ltd, registered in Colorado, manages Xinbi Guarantee, a major illegal online market operating via Telegram with transactions exceeding $8.4 billion. Xinbi’s massive financial flow, conducted mainly in USDT, raises alarms over crypto-fueled scams across Southeast Asia. The crackdown disrupts illicit activities, highlighting vulnerabilities in crypto regulations. Xinbi Guarantee Telegram Network Facilitates $8.4 Billion Fraud Elliptic’s investigation brought to light Xinbi Guarantee’s activities, revealing it as one of the largest illicit markets on Telegram. The company’s failure to comply with regulatory filings in Colorado marked its status as “delinquent.” Crypto transactions involving USDT took center stage, with funds mainly serving Southeast Asian scammers through technology and laundering services facilitated by Xinbi. With regulatory shortcomings evident, the firm’s dwindling compliance status remains a critical issue. Global channels, mainly on Telegram, were shut down after Elliptic’s findings. This action disrupted the platform’s operations, significantly impacting its illicit fund transfers. “Telegram has responded to Elliptic’s research by closing thousands of channels belonging to both Xinbi Guarantee and Huione Guarantee, severely disrupting the two largest Telegram-based illicit marketplaces…” The reliance on USDT for these transactions, linked to money laundering operations involving North Korean hackers, underscored the use of stablecoins in modern cybercrime. While no direct responses emerged from major regulators or key industry figures, the market remains vigilant, pondering future implications. According to CoinMarketCap, the current price of Tether (USDT) stands steady at $1.00, with a market cap of $150.35 billion and a 24-hour trading volume of approximately $105.39 billion. The stablecoin exhibits minor fluctuations, with a 24-hour change of -0.01% and a 30-day increment of 0.06%. Stablecoin Use in Crimes Escalates amid Regulatory Failings Did you know? Xinbi Guarantee’s usage of USDT echoes past darknet usage of BTC, highlighting shifting preferences in cyber fraud. Coincu’s research team stresses the urgent need for enhanced regulatory scrutiny within stablecoins to curb such fraudulent activities. The escalating cross-border concerns demand robust technological measures, emphasizing transparency and accountability in the crypto ecosystem. Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 13:49 UTC on May 14, 2025. Source: CoinMarketCapCoincu’s research team stresses the urgent need for enhanced regulatory scrutiny within stablecoins to curb such fraudulent activities. The escalating cross-border concerns demand robust technological measures, emphasizing transparency and accountability in the crypto ecosystem.