Xinbi’s Resilience Amid Regulatory Scrutiny
Xinbi, a guarantee marketplace operating primarily in Chinese, has shown remarkable resilience amid heavy regulatory scrutiny and enforcement actions aimed at illicit cryptocurrency operations. Since mid-2025, Xinbi has accumulated a staggering transaction total of approximately $17.9 billion, as per the on-chain insights provided by TRM Labs. This figure includes nearly $8.9 billion in inflows, highlighting the platform’s ability to thrive where others have faltered significantly due to regulatory pressures.
Operational Distinction and Growth
Guarantee marketplaces like Xinbi typically serve as informal escrow services, often facilitating various forms of financial misconduct, including scams and money laundering activities. What sets Xinbi apart is its ability to maintain operations and even grow despite an extensive crackdown on competing platforms, including Haowang and Tudou, which saw their activities plummet following coordinated enforcement actions in the spring of 2025. These measures comprised findings from the U.S. Treasury and shutdowns of communication channels used by those platforms.
In contrast to their struggles, Xinbi experienced a nearly twofold increase in inflows between May and December 2025, indicating that many users from the disrupted services moved to Xinbi. TRM Labs noted that Xinbi’s adaptability has been key to its continued success, as it pivoted from a reliance on Telegram to utilizing alternative messaging platforms like SafeW and even launched its proprietary wallet service, XinbiPay. These strategic changes not only helped the marketplace maintain its operations amid enforcement actions but also allowed for greater continuity of service, as users could stick with the platform through various channels.
Impact of Wallet Services and Regulatory Challenges
On-chain data reflects a minor downturn in activity during December 2025, but a strong resurgence followed in early 2026 as users adjusted to the new setups. The introduction of wallet services has played a crucial role in facilitating internal fund transfers, which complicates tracking for authorities and minimizes the dependency on external crypto exchanges.
As a platform, Xinbi operates without the rigorous Know Your Customer (KYC) requirements that traditional financial institutions face, which positions it as a significant player in the landscape of crypto-related financial crimes. It effectively acts as a key facilitator in the laundering of proceeds from scams into the broader cryptocurrency ecosystem.
Conclusion: Challenges for Law Enforcement
TRM Labs cautions that while enforcement efforts have posed challenges for individual marketplaces, the ongoing growth of Xinbi underscores the difficulties that law enforcement agencies encounter when attempting to dismantle decentralized networks. Disruption of these services is critical; targeting them early in the illicit financial activities can potentially hinder the reintroduction of these funds into the legitimate financial system.
