Xinbi Processes $17.9B in On-Chain Trades Despite Sanctions

VADODARA, February 9, 2026 — Chinese-language crypto platform Xinbi processed approximately $17.9 billion in on-chain transactions despite sanctions. This daily crypto analysis reveals persistent illicit finance flows. Blockchain analytics firm TRM Labs documented the activity. Xinbi shifted operations after Telegram channel blocks in 2025. The platform launched its own wallet, "XinbiPay." TRM Labs links Xinbi to cybercrime and phishing scams. Market structure suggests regulatory evasion remains robust.

Investigation: Sanction Evasion and On-Chain Volume

According to TRM Labs data, Xinbi's $17.9B volume occurred post-2025 sanctions. Telegram blocked Xinbi's channels that year. The platform immediately migrated to other messaging apps. XinbiPay wallet launch sustained ecosystem liquidity. TRM Labs report indicates Xinbi functions as a primary conduit for laundering. Proceeds originate from cybercrime and phishing operations. Since 2025, Xinbi has been suspected of links to Telegram-based black markets. These markets trade personal information and illegal tools. The TRM Labs forensic analysis provides on-chain evidence.

Market Context & Historical Precedent

Historically, sanction evasion mirrors 2021 OFAC actions against mixers. In contrast, Xinbi's scale exceeds typical darknet operations. Underlying this trend is decentralized infrastructure resilience. Platforms adapt faster than regulatory frameworks. Consequently, enforcement gaps widen. This activity coincides with global regulatory scrutiny. For example, recent developments in South Korea show heightened oversight. The South Korean parliament summoning Bithumb reflects similar compliance pressures. , the FSS chief's warning on Bithumb systemic risks. Market analysts note parallel concerns in derivatives markets. The Ethereum funding rates overheating signals correction risks amid fear.

Technical Architecture & Price Action

On-chain data indicates Xinbi used UTXO-based transactions for obfuscation. Market structure suggests Bitcoin's current price faces headwinds. RSI readings show oversold conditions at 28. The 50-day moving average at $70,200 acts as resistance. Fibonacci retracement from the 2025 high places key support at the 0.618 level of $65,000. This level must hold to prevent further downside. Order blocks near $68,000 show weak liquidity. Volume profile analysis reveals accumulation zones below $67,000. Fair value gaps exist between $69,500 and $71,000. These gaps represent potential liquidity grabs.

By The Numbers

Why It Matters

This matters for institutional liquidity cycles. Illicit volumes distort market microstructure. Regulatory crackdowns could trigger liquidity shocks. Retail market structure faces contamination risks. Historical cycles suggest such events precede volatility spikes. For instance, the 2023 Tornado Cash sanctions impacted DeFi TVL. Xinbi's activity highlights jurisdictional arbitrage. Platforms exploit regulatory fragmentation. The U.S. Treasury's OFAC framework, as detailed on Treasury.gov, struggles with cross-border enforcement. Consequently, compliance costs rise for legitimate entities. Market integrity erodes without coordinated action.

Expert Commentary

CoinMarketBuzz Intelligence Desk notes: "Xinbi's $17.9B volume demonstrates adaptive evasion tactics. Post-merge issuance changes on Ethereum haven't deterred such flows. Regulatory bodies must enhance blockchain forensic capabilities. Otherwise, systemic risks amplify during fear cycles."

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios. First, regulatory announcements could trigger sell-offs. Second, on-chain cleansing may restore confidence. Data-backed technical levels define invalidation.

• Bullish Invalidation Level: $72,500. A break above this resistance confirms trend reversal. It invalidates the current bearish structure.
• Bearish Invalidation Level: $65,000. This Fibonacci support must hold. A breach signals deeper correction toward $62,000.

The 12-month institutional outlook remains cautious. Regulatory scrutiny will intensify. Platforms may face stricter KYC mandates. This aligns with a 5-year horizon of increased compliance. Illicit finance volumes could decline with improved surveillance. However, technological adaptation by bad actors persists. Market analysts project sideways action until clarity emerges.