Xinbi Processed $17.9B After Telegram Ban, TRM Labs Finds

• TRM Labs estimates Xinbi processed $17.9 billion in gross on-chain volume despite Telegram bans.
• The figure includes internal transfers and does not represent confirmed illicit proceeds.
• Guarantee services adapt quickly by migrating platforms and building proprietary wallets.

A Chinese-language crypto guarantee service known as Xinbi processed nearly $17.9 billion in on-chain transaction volume despite platform bans and enforcement actions, according to a new report from TRM Labs. The findings show how parts of crypto-enabled laundering infrastructure continue to adapt rather than disappear under regulatory pressure.

TRM Labs said the $17.9 billion figure reflects gross on-chain volume linked to wallets attributed to Xinbi. This total includes inflows, outflows, and internal transfers within its escrow and wallet system. The analytics firm stressed that the number does not represent confirmed illicit proceeds or net gains, as internal recycling of funds remains common among guarantee services.

Enforcement pressure reshapes, but fails to dismantle activity

The recent crackdown involved Chinese language guarantee services that tend to be facilitated via messengers. In 2025, Telegram banned clusters of guarantee services to disrupt activities and financial transactions. TRM Labs indicates that Xinbi maintained on-chain activity despite the ban.

The report further indicates that Xinbi, however, quickly adapted to these measures by migrating users to different messaging services and launching an affiliated wallet, called XinbiPay. On-chain data indicates that activities within Xinbi wallets revived in January 2026, as users began using the new measures. Similar trends have emerged, for example, within crypto enforcement, where services are fragmented rather than shut down.

TRM Labs also associated Xinbi with suspected money laundering activities associated with scam businesses and cybercrime groups, including the pig butchering scams. In this regard, TRM noted that the guarantee service typically forms the core of the scam economies.

Xinbi adapts as pressure intensifies

Ari Redbord, global head of policy at TRM Labs, said services like Xinbi continue to evolve under enforcement pressure. He explained that guarantee services now fragment across platforms and build proprietary infrastructure to reduce reliance on any single channel.

“These services sit at the center of the scam economy,” Redbord said, adding that disrupting them can expose broader networks that depend on their laundering capabilities. TRM Labs stated that Xinbi introduced alternative forms of coordination as early as mid-2025 in preparation for further controls.

The analytics firm indicated that the trend intensified in January, which is consistent with further moves against peer services as well as arrests following laundering networks. Even with these moves, wallets under Xinbi’s management had robust flows.

Earlier reports flagged billions in stablecoin flows

Xinbi has continued to be in the spotlight since 2025. As per blockchain analytics company Elliptic, which identified the blockchain activity in May 2025, wallets associated with Xinbi Guarantee received a minimum of $8.4 billion in stablecoins, in connection with which it was noted to involve money laundering and scams in Southeast Asia.

That earlier analysis linked Xinbi to a Chinese-language marketplace that sold laundering services, stolen data, and scam-enabling tools. You can read similar investigations on Cointelegraph and Elliptic’s official research portal, which tracks how illicit actors exploit crypto rails.

What the findings mean for crypto oversight

TRM Labs stated that their concern with the case involving Xinbi is that “for regulators and platforms, shutting down accounts or even banning the channels might not be seen as a perfect solution, while at the same time, it is not a guarantee that demand for these money laundering services will be reduced, as they might even develop new infrastructure to operate.”

Besides, it appears to me that targeting guaranteed services remains key since they are likely to connect scam operators, brokers, and cash out. Hindering them in the chain might undermine these illegal systems, despite taking some time to cause positive actions.

In the case of the crypto space, the findings highlight the urgency of collaboration between analytical companies and platforms to tackle the issue, failing which services like Xinbi could potentially continue to operate on a large scale despite repeated crackdowns.

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