UK Sanctions Xinbi, Alleged $20B Crypto Black Market Linked to Southeast Asia Scam Networks
UK authorities have imposed sanctions on Xinbi, a Chinese-language cryptocurrency marketplace that blockchain analytics firm Chainalysis estimates handled nearly $20 billion in illicit funds between 2021 and 2025.
Britain's Foreign, Commonwealth & Development Office (FCDO) said Thursday the measures target a platform accused of supplying crypto-based services, scam tools and other resources used by criminal actors across Southeast Asia. The sanctions freeze any UK-linked assets associated with Xinbi and prohibit UK banks, crypto firms and individuals from doing business with the platform.
Investigators and researchers have described Xinbi as more than a criminal payment channel, pointing to alleged links with a broader web of illicit operations connected to scam compounds across Southeast Asia. These hubs have drawn international attention over reports that trafficked workers are forced to run large-scale fraud schemes aimed at victims worldwide.
Two individuals were also sanctioned. Thet Li is accused of running the international financial network of the Prince Group, a Cambodia-based company tied to large-scale crypto fraud. Hu Xiaowei is alleged to have operated within the same network and to have links to "#8 Park," a scam compound associated with the Prince Group.
Chainalysis, which provided blockchain data supporting the action, said the move is aimed at the scam ecosystem's "on- and off-ramps"—pathways that allow operators to move funds between crypto and the traditional financial system. The firm said Xinbi functioned as a commercial hub offering payment processing and marketing services that helped fraud operators maintain the infrastructure needed to run their schemes.
The FCDO said the goal is to isolate Xinbi from the wider crypto system by disrupting its ability to send and receive transactions. In practical terms, that would cut the platform off from exchanges, wallets and financial services required for day-to-day operations.
The UK statement also emphasized a distinction between legitimate crypto activity and criminal abuse of the technology. The framing is closely watched by the industry, which has long faced criticism that fraud and money laundering risks warrant tighter constraints across the sector.
The Financial Action Task Force estimates that 2% to 5% of global GDP is laundered each year through traditional financial networks. Chainalysis data places illicit crypto transactions at below 1% of total on-chain activity, a figure frequently cited by the industry.
