Xinbi Processes $17.9B in Crypto Despite Crackdowns, TRM Labs Found

Key Insights

• Enforcement failed to shut down the Chinese crypto marketplace Xinbi.
• Activity persisted despite bans and arrests.
• Infrastructure migration sustained transaction flows.

A Chinese-language crypto guarantee marketplace called Xinbi processed 17.9 billion dollars in onchain volume despite enforcement pressure, TRM Labs said.

The activity continued through bans and U.S. actions targeting similar services. Investigators said the platform adapted faster than peers as authorities intensified crackdowns.

The report placed Xinbi within the center of crypto-enabled laundering infrastructure. The finding mattered because guarantee services act as trust anchors for scam networks. Xinbi’s resilience showed how enforcement pressure reshaped operations rather than removing them.

TRM Labs used the marketplace as a case study for adaptive laundering infrastructure. The analysis showed how platforms preserved transaction flows by changing communication and custody layers. This approach kept user activity intact while peers collapsed.

Enforcement Fails to Stop Transaction Flows of Xinbi

TRM Labs data showed Xinbi sustained activity after messaging bans disrupted Chinese-language guarantee networks. The move followed Telegram’s removal of large channel clusters linked to illicit escrow services.

While competitors lost users and liquidity, the marketplace maintained operational continuity.

Xinbi Wallet Inflow and Outflow | Source: TRM Labs

The divergence emerged because Xinbi fragmented its coordination channels early. Administrators redirected users to alternative platforms before bans escalated. That preparation limited disruption once enforcement actions accelerated.

The firm linked this continuity to structural decisions rather than demand spikes. The marketplace avoided dependency on a single platform. This design reduced exposure to takedowns that crippled rival services.

Xinbi Onchain Data Shows Migration, Not Decline

TRM Labs observed wallet activity rebound in January 2026 after a short transition period. The shift occurred because Xinbi launched an affiliated wallet while moving coordination off Telegram. Users followed infrastructure rather than abandoning the service.

Quarterly Incoming Crypto Volumes | Source: TRM Labs

The wallet migration changed how funds moved onchain. Flows shifted from legacy Telegram bots to new custody addresses. Investigators tracked this movement as evidence of operational reconstitution, not recovery from losses.

Xinbi Activity | Source: TRM Labs

This pattern contrasted sharply with peer platforms. Rival guarantee services saw inflows collapse after enforcement actions. Xinbi absorbed displaced activity as users searched for continuity.

Role of Xinbi Inside the Scam Economy

TRM Labs linked Xinbi to laundering tied to scam operations and cybercrime syndicates. The platform allegedly supported pig-butchering fraud networks operating across Southeast Asia. Guarantee services matter because they connect scammers, money mules, and cash-out providers.

The report described the marketplace as more than an escrow tool. Operators allegedly controlled wallets, mediated disputes, and coordinated conversions between crypto and cash. That control positioned the platform as a central node rather than a passive intermediary.

Elliptic previously flagged wallets tied to the Chinese crypto marketplace for large stablecoin flows. Those findings placed the service under scrutiny before the latest report. Investigators viewed the scale as incompatible with legitimate escrow use.

Why Guarantee Services Proved Hard to Kill?

TRM Labs said guarantee services survived because they combined multiple functions. They offered informal escrow, custody, and marketplaces with minimal checks. This structure attracted illicit actors seeking speed and discretion.

Operators also profited beyond transaction fees. Control over money mule networks enabled offchain cash movement. That dual role increased both revenue and influence inside criminal ecosystems.

Enforcement pressure changed behavior rather than incentives. Platforms fragmented operations across messaging apps and proprietary systems. This strategy reduced single points of failure.

Broader Enforcement Implications

TRM Labs said targeting guarantee services remained effective despite adaptation. Removing facilitators exposed networks that depended on them. Investigators gained clearer transaction trails once internal custody layers disappeared.

However, Xinbi showed that disruption required persistence. Partial takedowns displaced activity instead of eliminating it. Users followed trusted intermediaries until access failed completely.

The report framed Xinbi as evidence of an arms race. Enforcement tightened controls while platforms restructured faster. Each cycle raised operational costs without removing demand.

Meanwhile, TRM Labs said further enforcement actions could accelerate fragmentation across smaller platforms. Investigators now track proprietary wallets and alternative messaging tools.

The next phase hinges on whether authorities disrupt custody layers rather than communication channels.

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