Telegram has continued to host accounts tied to Xinbi Guarantee, a Chinese-language crypto black market that the UK government sanctioned in late March for alleged roles in scamming and human trafficking. According to WIRED, nearly three weeks after the sanctions, Telegram had not removed Xinbi’s accounts, during which time the marketplace reportedly processed large volumes of illicit activity.
What Xinbi Guarantee is and Telegram’s role
WIRED reports that for three and a half years, Telegram has hosted a Chinese-language black market known as Xinbi Guarantee. The outlet describes Xinbi as offering money laundering services for crypto scammers, alongside products such as “electrified batons and tasers” used in trafficking operations. WIRED also reports that Xinbi has offered other criminal services, including “harassment-for-hire” and “teen prostitution.”
The key issue is that criminal activity has operated at scale using the same communication infrastructure that legitimate users rely on. WIRED reports that despite repeated reporting by the outlet and crypto crime researchers, the marketplace continued to operate. WIRED states that Xinbi has grown into the “biggest black market on the internet,” supported by an estimated $21 billion in total transactions.
UK Sanctions and Transaction Activity
The UK government sanctioned Xinbi Guarantee on March 26. According to WIRED, the UK Foreign, Commonwealth and Development Office officially sanctioned Xinbi, alleging it enabled and profited from scam centers in Southeast Asia. The sanctions notice stated: “Xinbi has enabled and profited from the operation of scam centers in Southeast Asia.” It also noted that “The treatment of individuals in these scam centers amounts to a serious abuse of the right not to be subjected to cruel, inhumane, or degrading treatment or punishment, and of the right to be free from slavery, not to be held in servitude or required to perform forced or compulsory labour.”
Yet nearly three weeks later, WIRED reports that Telegram still had not removed Xinbi’s accounts. During that period, WIRED says Xinbi facilitated more than $500 million worth of illicit deals.
WIRED attributes these figures to cryptocurrency tracing firm Elliptic. According to WIRED, Elliptic reported that Xinbi carried out $505 million in transactions in the 19 days after the British government’s sanctions and added “tens of thousands” more users to reach nearly half a million buyers and sellers in total. Elliptic’s cofounder and chief scientist Tom Robinson is quoted by WIRED saying: “Xinbi is still going strong.” He added: “They’re on track to become the largest market of this kind that’s ever existed.”
WIRED further reports that Elliptic “has seen no signs that Telegram has taken any action to ban the market or its accounts.”
Telegram’s Stated Position on Content Moderation
Telegram did not respond to WIRED‘s requests for comment regarding hosting Xinbi after the UK sanctions. However, WIRED includes a prior statement Telegram provided in June of last year about why it hosted Xinbi and other Chinese-language black markets.
In that statement to WIRED, a Telegram spokesperson argued that such markets allow Chinese citizens “to seek alternative avenues for moving funds internationally” despite what Telegram described as China’s rigid financial controls. WIRED reports the spokesperson said Telegram “assess[es] reports on a case-by-case basis and categorically reject[s] blanket bans—particularly when users are attempting to circumvent oppressive restrictions imposed by authoritarian regimes.” The statement also read: “We remain unwavering in our commitment to safeguarding user privacy and defending fundamental freedoms, including the right to financial autonomy.”
WIRED reports that Elliptic’s findings contradicted this characterization. According to WIRED, Elliptic concluded Xinbi was predominantly used as a money laundering service for the crypto scam industry, including Chinese-run organized syndicates that operate compounds across Myanmar, Cambodia, and Laos. WIRED reports that Elliptic linked these operations to enslaving “hundreds of thousands of human trafficking victims” forced to work as scammers. WIRED also reports that Elliptic found listings offering products intended for trafficking operations, including electrified batons, tasers, and handcuffs.
Industry Response and Enforcement Questions
WIRED quotes security researcher Gary Warner, identified as director of intelligence at cybersecurity firm DarkTower, who tracked Xinbi Guarantee. Warner is quoted saying: “It boggles my mind.” He stated: “There’s literally no legitimate company in the world that hosts this level of criminal activity and is so open about it. There’s nothing that even comes close.”
The underlying technical issue is measurable: account hosting and transaction facilitation appear to have continued after sanctions. This suggests a lag between external legal or regulatory signals and concrete platform actions such as account removal.
WIRED notes that Xinbi is “one in an industry of Chinese-language black markets that operates on Telegram in full public view.” The article indicates that Telegram’s detection-and-removal processes may depend heavily on reporting, internal review capacity, and the interpretation of what constitutes an actionable case.
Source: WIRED