HuangGuan intercepts traders after Xinbi Guarantee collapse

HuangGuan Guarantee, founded by the former owner of Xinbi Guarantee, is attracting traders leaving Xinbi in large numbers. Blockchain research firm Bitrace reports that HuangGuan has received more than $26 million USDT since 1 September. Nearly half of that inflow can be traced to addresses linked to money laundering. Moreover, the growth is accelerating rapidly.

In brief:

• HuangGuan has received more than $26 million USDT since 1 September, largely from former Xinbi traders.
• More than $12.6 million USDT comes from addresses linked to money laundering.
• The waiting list for new users is growing, indicating that HuangGuan is operating at full capacity.

Exodus of Xinbi traders to HuangGuan

Xinbi Guarantee was one of the largest USDT-based guarantee services operating within criminal networks. After the fall of that platform, where Tether previously froze 393 million USDT linked to Xinbi, the traders involved are seeking shelter elsewhere.

HuangGuan appears to be taking over that role now. According to Bitrace, the inflow of USDT shows a clear pattern: the amounts rose sharply around 8 and 9 September, with a daily net increase of over $5.2 million on 9 September. On 10 September, it was still above $3.1 million.

Half of inflow comes from money launderers

Bitrace specifically analysed the addresses of traders who deposited more than $15.000 USDT as collateral. This shows that HuangGuan received more than $12.6 million USDT from addresses linked to money laundering by former Xinbi traders. That is 48% of the total relevant inflow.

Bitrace indicates that this percentage is likely to be even higher when transactions from other categories of suspicious addresses are also included. The graphs show that the share of Xinbi-related money launderers rose to nearly 69% of the daily inflow at HuangGuan on 9 September.

Waiting list due to full capacity

The rapid growth is causing congestion at HuangGuan. Rumours within the community suggest that the service is currently operating at full capacity. New users must place themselves on a waiting list before gaining access.

Bitrace also says it has observed a large number of cases where traders are actively switching. A Telegram message from 9 September, originating from a traders’ channel, confirms that several parties have moved their activities to HuangGuan after suffering losses of at least 750,000 USDT at Xinbi.