Chinese Crypto Operation Tied to Shady Colorado Business
A shadowy Chinese crypto operation at the center of over $8.4 billion in illicit activity has been linked to a company legally registered in Colorado. Investigators have uncovered Xinbi Guarantee—a marketplace based in China but incorporated in the U.S.—as a hub for crypto-powered scams and disturbing services, including money laundering and extortion.
Despite its U.S. registration, the firm’s real activity thrives within an underground ecosystem fueled by stablecoins and encrypted messaging apps. The revelations have reignited debate over the global reach of Chinese crypto networks and their exploitation of regulatory loopholes.
A Market of Exploitation and Crime
According to blockchain analytics firm Elliptic, Xinbi Guarantee isn’t just involved in financial crime. Its Telegram channels have also hosted listings for disturbing and illegal services.
These include surrogate mothers and egg donors, some accompanied by photos that obscure their faces but expose their bodies. Other accounts offered to vandalize properties, send funeral wreaths to targets’ homes, and even harass victims using individuals allegedly living with HIV.
One researcher was shockingly offered a 14-year-old sex worker. Though the vendor stated Xinbi wouldn’t “guarantee” any deal involving someone under 18, such posts have raised deep ethical and legal concerns.
Colorado Ties: A Front for Legitimacy?
Despite its deeply illicit operations, Xinbi Guarantee is officially incorporated in Aurora, Colorado. The business was registered in August 2022 by someone named Mohd Shahrulnizam Bin Abd Manap. The filing, now marked “delinquent,” lists an unmarked office park as its address.
Experts say Chinese companies—both legal and illicit—often use U.S. registrations to gain credibility. “If you have a U.S. presence, you can also open U.S. bank accounts,” said Jacob Sims, a Harvard Asia Center fellow who studies Chinese transnational crime.
Sims suspects Xinbi’s presence in Colorado was a failed attempt to project legitimacy and expand operations, which has since been abandoned or deprioritized.
How Crypto and Telegram Power the Ecosystem
Elliptic’s research revealed that stablecoin Tether is the primary payment method across Xinbi Guarantee’s network. Telegram serves as the central communication platform, despite ongoing attempts to shut down such criminal accounts.
The use of Tether—favored for its price stability and speed—has enabled near-invisible transactions across borders. While Bitcoin remains decentralized and traceable, Tether can freeze assets, offering potential to curb criminal use.
Still, it’s unclear whether Tether’s administrators have taken meaningful action against Chinese-language crypto platforms using its services.
The Growing Scope of Chinese Crypto Markets
Xinbi Guarantee is just one node in a broader constellation of underground Chinese crypto markets. According to Elliptic, nearly 30 similar platforms are currently under investigation.
This new wave of digital black markets operates in Mandarin, on encrypted apps, and relies heavily on stablecoins. They exploit weak enforcement mechanisms and sophisticated anonymity tools to continue business as usual.
Even as Telegram purges known offenders, new channels often resurface under different names, creating a game of digital whack-a-mole.
Chinese Crypto Crime Finds New Global Footholds
The case of Xinbi Guarantee demonstrates how Chinese crypto markets are increasingly exploiting legal gray zones abroad. With a registered address in Colorado and billions in illicit transactions, this operation underscores the need for stronger global cooperation between regulators, platforms, and payment providers.
As crypto continues to evolve, law enforcement and tech firms must move faster to dismantle networks like Xinbi Guarantee before they gain deeper roots in the global financial system.
