In the unpredictable ecosystem of cryptocurrency-facilitated crime, significant updates highlight both the adaptability of underground markets and the intensifying efforts by authorities to dismantle them. Despite global enforcement pushes, TRM Labs noted that some platforms continue to thrive, while others face severe repercussions for their operators.
TRM Labs pointed out that one notable case involves Xinbi, a Chinese-language escrow service that has demonstrated remarkable durability amid regulatory pressures.
Emerging around 2022, Xinbi functions as a hub for connecting cryptocurrency buyers and sellers, often linked to illegal activities like fraud and data trading.
It offers minimal oversight, including wallet services and networks for converting digital assets to fiat currency.
Historically reliant on Telegram for coordination via encrypted groups and automated tools, Xinbi adapted swiftly when the messaging app banned associated channels in spring 2025.
The platform shifted operations to the more secure SafeW app and introduced XinbiPay, a low-verification wallet system.
This move likely stems from its base in Southeast Asia’s Golden Triangle area, where it supports scam syndicates and cybercrime groups.
Financially, Xinbi has handled an estimated $17.9 billion in transactions, with inflows to linked wallets reaching $8.9 billion since 2022.
Even after U.S. authorities, through the Financial Crimes Enforcement Network (FinCEN), targeted similar services like Huione Guarantee and Haowang Guarantee in May 2025 with special measures under Section 311, Xinbi’s activity surged.
On-chain analysis shows volumes nearly doubling from May to December 2025, with a further spike in early 2026 following the shutdown of competitor Tudou Guarantee and the arrest of Prince Group leader Chen Zhi for laundering funds via related platforms.
Unlike its peers, which saw transaction drops of up to 100%, Xinbi’s multi-platform strategy has sustained its growth, underscoring how these services evolve to evade single-point disruptions.
In contrast, the operator of Incognito Market, a darknet drug bazaar, has faced harsh justice.
Rui-Siang Lin, known online as “Pharaoh,” received a 30-year federal prison sentence in the U.S., along with a forfeiture order exceeding $105 million in illicit gains.
Launched in October 2020 and active until March 2024, Incognito mimicked legitimate e-commerce sites with user-friendly features like search tools, vendor ratings, and support.
It enabled nearly 1,800 sellers to distribute narcotics such as cocaine, heroin, MDMA, and counterfeit opioids to buyers worldwide, amassing over $100 million in sales.
The platform’s cryptocurrency-only model included an internal “bank” for handling payments, escrows, and fees.
Enforcement involved a coordinated effort by agencies including the FBI, DEA, and Homeland Security Investigations, using undercover buys and blockchain tracing to link transactions to Lin’s identity.
A failed exit scam attempt in early 2024, where admins demanded payments to withhold vendor data, further exposed the operation.
This case illustrates the vulnerabilities in anonymized networks, as advanced financial forensics pierced the veil of privacy, leading to accountability.
These developments reveal a mixed enforcement impact: while takedowns like Incognito’s disrupt specific threats, adaptable entities like Xinbi redistribute illicit flows, complicating global crackdowns.
