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Industry

U.K. Sanctions Illegal Marketplace Over Role in Crypto Scam Laundering

Authorities say the platform acts as a key off-ramp for illegal funds, especially from romance and “pig butchering” scams.

Written By:
Iyiola Adrian

Reviewed By:
Shubham Soni

Last updated: March 27, 2026 11:30 AM
Published March 26, 2026 8:24 PM
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Last updated: March 27, 2026 11:30 AM
Published March 26, 2026 8:24 PM
U.K. Sanctions Illegal Marketplace Over Role in Crypto Scam Laundering

Key Highlights

  • The UK sanctioned Xinbi Guarantee for helping scammers move and hide stolen cryptocurrency.
  • The platform is linked to scam centers in Southeast Asia, where many workers are forced into fraudulent activities under harsh conditions.
  • The platform reportedly processed over $19.9 billion in transactions.

The UK government, through the Foreign, Commonwealth and Development Office, has placed sanctions on Xinbi Guarantee, a Chinese-language cryptocurrency platform, for its part in large-scale online scams and human exploitation. 

According to an official report, Xinbi Guarantee profited from scam centers, particularly in Southeast Asia. These centers run various types of fraud, including romance scams and “pig butchering,” a scheme where victims are gradually convinced to invest increasing amounts of money. 

Authorities also stated that people working in these centers are often forced to work under harsh conditions, with some believed to be victims of human trafficking. The sanctions were issued under the UK’s global human rights regime.

Scam center disguised as a legitimate marketplace 

Xinbi reportedly operates as an escrow-style marketplace, meaning it acts like a middleman that holds funds during transactions to build trust between parties. In simple terms, it connects people offering illegal services with those who need them. These services include money laundering, stolen personal data, and tools used to carry out scams. 

According to blockchain analytics firm Chainalysis, the platform processed more than $19.9 billion in transactions between 2021 and 2025. It is also linked to #8 Park in Cambodia, which has been described as a large scam compound. The site can hold up to 20,000 workers, many of whom are believed to have been forced into scam activities.

“Our sanctions today send a clear message: We will not allow British people to become victims of these dreadful scams or tolerate the awful human rights abuses perpetrated in these scam centers,” said Stephen Doughty, the UK minister for Europe, North America and Overseas Territories.

Reason for the sanctions

The UK government said the sanctions are intended to isolate Xinbi from the legitimate cryptocurrency system. This includes restricting its ability to send and receive digital funds through recognized channels, making it more difficult for the platform to operate.

According to authorities, Xinbi became more active after similar platforms like Huione Guarantee and Tudou Guarantee shut down. It offers services like peer-to-peer trading, escrow services, and messaging apps that help users carry out fast transactions. 

Even after being removed from Telegram, Xinbi continued operating by moving to other platforms like SafeW and creating its own payment tool, XinbiPay. Authorities say platforms like Xinbi are part of a broader network that helps criminals move billions of dollars in illegal crypto every year, and they plan to crack down on them by targeting more of their systems.

Also Read: India Busts ISIS Crypto Network, 19-Year-Old Student Held

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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TAGGED:Crypto ScamUnited Kingdom
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Iyiola - Crypto Journalist at The Crypto Times
By Iyiola Adrian
Follow:
Iyiola is an experienced crypto writer specializing in simplifying complex blockchain and cryptocurrency topics for a broad audience. With expertise in ICOs, DeFi, NFTs, and regulatory updates, he offers valuable insights to help readers make informed decisions.
Shubham Soni Crypto Content Editor
By Shubham Soni
Follow:
Shubham Soni is a veteran content editor and journalist with over three years of experience leading digital editorial strategies across the U.S. and Indian markets. With a background in high-pressure newsrooms, Shubham specializes in the rigorous fact-checking, structural editing, and narrative development of complex news and explainers. Throughout his career at prominent digital publications like Sportskeeda and Opoyi, he has managed fast-paced desks covering global politics, sports, and entertainment. His expertise lies in transforming technical information into accessible, high-impact reporting while maintaining strict adherence to editorial ethics and accuracy. At The Crypto Times, Shubham oversees the editorial workflow, mentoring writers to ensure all cryptocurrency research and analysis meets the highest standards of clarity and journalistic integrity.

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