The UK’s Foreign, Commonwealth and Development Office (FCDO) has placed sanctions on Xinbi, a Chinese-language crypto marketplace, which the blockchain analytics firm Chainalysis identifies as having processed approximately $20 billion in transactions from 2021 to 2025.

This measure indicates that the UK government is not just targeting individual scammers but is also addressing the financial infrastructure bolstering Southeast Asia’s expansive fraud schemes.

The Platform’s Role in the Scam Supply Chain

Chainalysis describes Xinbi as a peer-to-peer marketplace, chiefly operating on Telegram, where criminals can buy and sell illicit goods and services—complete with built-in escrow protections. The marketplace primarily facilitates the sale of stolen personal information, money laundering services, scam software, and satellite internet equipment used to contact victims of fraud.

In addition to Xinbi, the UK also sanctioned Legend Innovation, which runs #8 Park, recognized by the UK authorities as Cambodia’s largest scam operation able to accommodate 20,000 trafficked individuals. The sanctions also target Thet Li, noted as a vital financial aide, and Hu Xiaowei, who is accused of using multiple aliases.

Chainalysis revealed that Xinbi handled nearly $19.9 billion in cryptocurrency transactions over four years and was intricately tied to other illegal services like Huione and Tudou guarantee platforms. The firm further stated that Xinbi was actively engaging in scams by providing tutorials and chatbots for criminals to manipulate victims.

Despite earlier attempts to shut down the network, including urging Telegram to disable channels related to the escrow market, the platform managed to establish new communication channels without a noticeable drop in transaction volume during the regulatory actions.

Growing Threat of Crypto Laundering Networks

Earlier, CryptoPotato reported how escrow markets like Xinbi transferred millions to major crypto exchanges, with money sourced from online gambling, scams, and vast laundering operations. Huione Group, one of the largest operations, was reported to have handled over $24 billion before its shutdown in mid-2022.

The FCDO’s actions against Xinbi underscore heightened efforts to tackle crypto-related fraud by targeting the railways and marketplaces that support such criminal activities. These sanctions originated under the UK’s Global Human Rights process, highlighting accusations against Xinbi for facilitating torture and other human rights violations within scam centers.

To further combat these issues, the UK government employs various strategies aimed at deterring criminals from cashing out and utilizing stolen digital assets, including regulatory measures and collaboration with law enforcement. An example of such collaboration includes a joint operation with US authorities to dismantle the Huione Group and initiate a $15 billion civil forfeiture case against it.