UK Sanctions $20B Crypto Marketplace Linked to Scam Hubs

The goods supplied to Xinbi included stolen personal data, money laundering tools, and satellite devices to communicate with fraud victims.

Britain’s Foreign, Commonwealth and Development Office (FCDO) has approved Chinese-language crypto marketplace Xinbi, which blockchain analytics firm Chainalysis says has processed around $20 billion between 2021 and 2025.

The designation means the UK government is not only targeting the fraudsters but also targeting the financial infrastructure that keeps South East Asia’s industrial fraud operations running.

The Role of Platforms in the Fraudulent Supply Chain

According to Chainalysis, Xinbi is a peer-to-peer marketplace, especially on Telegram, where criminals can buy and sell illegal goods and services with built-in escrow protection. Think of it as an online marketplace, except that sellers aren’t selling consumer goods. They sell stolen personal data, money laundering services, scam software, and even satellite internet devices used to communicate with fraud victims.

Alongside Xinbi, the FCDO also sanctioned Legend Innovation, which operates in #8 Park, described by the UK government as Cambodia’s biggest fraud site capable of housing 20,000 trafficked workers, and two people linked to the Prince Group: Thet Li, described as a key financial officer, and three alleged Huiase subordinates.

According to data provided by Chainalysis, the platform processed about $19.9 billion in crypto flows over a four-year period and was strongly linked to other illegal services such as Huione and Tudou guarantee platforms. In addition, the company reported that Xinbi was running scams by offering hackers tutorials and chatbots to help them control victims.

This is not the first time the network has been targeted, authorities are pressuring Telegram to close the crypto escrow market channels by 2025. However, that action did nothing to stop it, as it quickly created new communication channels and ensured that its website was still accessible. Even on-chain data showed that the transaction volume on the platform did not decrease during the Telegram downgrade.

Crypto Laundering Networks Are a Growing Problem

At the beginning of the year, CryptoPotato reported how escrow markets like Xinbi have sent millions to large crypto exchanges, with money from online gambling, scams, and large-scale smuggling operations. One of the largest, Huione Group, is said to have considered a transaction worth more than 24 billion rands before it was closed in the middle of last year.

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FCDO’s sanctioning of Xinbi highlights the increasing efforts to combat crypto-enabled fraud by directly targeting the railways and markets that support them. The designation of this organization was under its Global Human Rights process, as it accuses Xinbi of supporting organizations that participate in torture and other human rights abuses in fraud centers.

Apart from targeting, the UK uses a number of other measures to try to stop criminals from moving, withdrawing money, and using stolen digital assets, including regulations and close cooperation with law enforcement. One such joint action saw UK agencies team up with US authorities, including OFAC and FinCEN, to shut down Huione Group and open a $15 billion civil asset forfeiture case.