Xinbi Merchants Migrate to New Telegram Market After Major U.S. Crackdown
Sep 17, 2026
September 2026 — Cybercrime / Crypto Fraud
The shutdown of Xinbi Guarantee has not ended the Telegram-based underground marketplace ecosystem. New blockchain analysis indicates that merchants are already migrating to another guarantee platform known as HuangGuan Guarantee.
Xinbi was targeted by U.S. authorities on September 9 as part of a major operation against Southeast Asian scam networks. The Justice Department said approximately $52 million in cryptocurrency was restrained in a single day, while Telegram channels connected to Xinbi were also targeted for seizure.
Millions Already Moving to a Successor
According to blockchain intelligence firm Bitrace, HuangGuan received more than $26 million in USDT since September 1, with activity accelerating around the Xinbi crackdown.
Bitrace traced more than $12.6 million of those funds to addresses associated with money-laundering merchants previously linked to Xinbi. That represented approximately 48% of the relevant inflows analyzed by the company.
On September 9, the proportion reportedly climbed to nearly 69% of HuangGuan's daily inflows, suggesting that a substantial migration was taking place as pressure on Xinbi intensified.
Reports cited by Bitrace also indicate that HuangGuan's private marketplace became so crowded that new participants were being placed on a waiting list.
Crackdowns Disrupt Markets — But Don't Always Eliminate Them
The development illustrates a recurring problem for law enforcement. Taking down a major criminal marketplace can disrupt its infrastructure and freeze enormous amounts of money, but the merchants operating through it may simply search for another platform.
Other guarantee marketplaces appear to be reacting differently. Following the Xinbi sanctions, another platform reportedly began removing money-laundering merchants while millions of dollars in USDT flowed out of its associated wallets.
The Xinbi case therefore shows how quickly underground financial networks can reorganize after enforcement action. Instead of disappearing, parts of the ecosystem may fragment and migrate to competing platforms.
For investigators, the next challenge will be determining whether HuangGuan becomes a major successor to Xinbi — or whether continued enforcement pressure forces the network to scatter again.
The shutdown of Xinbi Guarantee has not ended the Telegram-based underground marketplace ecosystem. New blockchain analysis indicates that merchants are already migrating to another guarantee platform known as HuangGuan Guarantee.
Xinbi was targeted by U.S. authorities on September 9 as part of a major operation against Southeast Asian scam networks. The Justice Department said approximately $52 million in cryptocurrency was restrained in a single day, while Telegram channels connected to Xinbi were also targeted for seizure.
Millions Already Moving to a Successor
According to blockchain intelligence firm Bitrace, HuangGuan received more than $26 million in USDT since September 1, with activity accelerating around the Xinbi crackdown.
Bitrace traced more than $12.6 million of those funds to addresses associated with money-laundering merchants previously linked to Xinbi. That represented approximately 48% of the relevant inflows analyzed by the company.
On September 9, the proportion reportedly climbed to nearly 69% of HuangGuan's daily inflows, suggesting that a substantial migration was taking place as pressure on Xinbi intensified.
Reports cited by Bitrace also indicate that HuangGuan's private marketplace became so crowded that new participants were being placed on a waiting list.
Crackdowns Disrupt Markets — But Don't Always Eliminate Them
The development illustrates a recurring problem for law enforcement. Taking down a major criminal marketplace can disrupt its infrastructure and freeze enormous amounts of money, but the merchants operating through it may simply search for another platform.
Other guarantee marketplaces appear to be reacting differently. Following the Xinbi sanctions, another platform reportedly began removing money-laundering merchants while millions of dollars in USDT flowed out of its associated wallets.
The Xinbi case therefore shows how quickly underground financial networks can reorganize after enforcement action. Instead of disappearing, parts of the ecosystem may fragment and migrate to competing platforms.
For investigators, the next challenge will be determining whether HuangGuan becomes a major successor to Xinbi — or whether continued enforcement pressure forces the network to scatter again.