Telegram Shuts Down $8 Billion Chinese Crypto Crime Network Xinbi Guarantee, Exposing Global Fraud Web

Telegram has dismantled a significant Chinese-language crypto crime network known as Xinbi Guarantee, which allegedly facilitated over $8 billion in illicit transactions since its establishment in 2022. This decisive action, prompted by investigations from blockchain analytics firm Elliptic and media inquiries, led to the suspension of multiple Telegram channels and accounts directly associated with the network.

A Sophisticated Crypto Crime Marketplace Operating in Plain Sight

Despite its illegal activities, Xinbi Guarantee was legally registered in the U.S. state of Colorado, giving it a deceptive appearance of legitimacy. The platform primarily operated on Telegram, offering a wide array of criminal services, including pig-butchering scams, money laundering, stolen data sales, and even ads promoting illegal activities such as underage exploitation and surrogacy—a chilling reminder of the dark underbelly of the digital economy.

Elliptic’s research identified Xinbi Guarantee as a pivotal enabler of large-scale crypto fraud operations. The network provided financial services not only to Chinese-speaking fraud syndicates but also to cybercriminals with alleged ties to North Korea. By leveraging advanced wallet routing techniques and stablecoins like Tether (USDT), Xinbi Guarantee was able to obscure the origins and destinations of illicit funds, making it a formidable player in the global crypto crime ecosystem.

The Haowang Connection: A Nexus of Southeast Asian Criminal Enterprises

Xinbi Guarantee’s operations are closely linked to another notorious entity: Haowang Guarantee, formerly known as Huiwang Guarantee. Based in Cambodia, Haowang Guarantee has been designated by the U.S. Treasury Department as a major money laundering organization. It is reportedly part of a broader transnational crime syndicate involved in online fraud, human trafficking, and crypto-facilitated money laundering across Southeast Asia.

Since 2021, Haowang Guarantee has been connected to over $27 billion in crypto-related transactions. Like Xinbi, Haowang operated openly on Telegram until its channels were taken down following public exposure. However, experts warn that spinoff platforms, may emerge to replace these networks, perpetuating the cycle of fraud under new aliases.

Crypto Crime on the Rise: A Global Challenge

Telegram’s crackdown on Xinbi and Haowang comes against the backdrop of a global surge in crypto-related crime. According to Chainalysis, illicit cryptocurrency transactions reached a staggering $51 billion in 2024, with stablecoins accounting for a significant portion of this volume. These transactions often occur through loosely regulated exchanges, making them difficult to trace and even harder to shut down.

The UNODC has also raised alarms about Southeast Asia’s increasingly digital criminal networks. These groups leverage encrypted messaging apps like Telegram, artificial intelligence tools, and crypto wallets to operate with near impunity, posing a growing challenge to law enforcement agencies worldwide.

A Word of Caution

As cryptocurrency adoption expands globally, so too does the sophistication of the threats accompanying it. Users are strongly advised to stay vigilant, particularly when approached with investment opportunities that seem too good to be true. While platforms like Telegram offer privacy and convenience, they are increasingly exploited by organized crime networks.

To protect yourself:

• Stay informed about the latest scams.

• Double-check wallet addresses before transacting.

• Trust your instincts—if something feels suspicious, report it immediately.

The battle against crypto crime is far from over, but actions like Telegram’s recent crackdown are crucial steps in disrupting these sophisticated criminal ecosystems.