Stolen Crypto from Gate User Laundered via Xinbi Network

Blockchain research firm Bitrace has traced how stolen cryptocurrency from a Gate user was fully laundered through the criminal network of Xinbi Guarantee. The stolen Ethereum was converted into USDT via a so-called Public Group, disappearing into the system. Bitrace reports that the stolen ETH was sold for approximately $1.800 each, close to the current price of $1.800.

Ethereum is available at OKX and Bybit.

How the laundering operation works

The stolen funds pass through a Public Group operating under the umbrella of Xinbi Guarantee. This group records all transactions via a Report Bot on Telegram. The screenshots show how buyers and sellers find each other through this bot, trading hundreds of thousands of dollars in USDT. For instance, a transaction of $500.000 USDT and one of $250.000 USDT are visible, followed by smaller payments in ETH.

The trader on the other side of the transactions uses Newpay as a receiving address. This is a crypto payment tool that falls directly under Xinbi Guarantee. The structure ensures that the stolen funds flow through the system in multiple steps, making them difficult to trace for outsiders without specialised analysis tools.

Newpay has already received over $1.6 billion

Bitrace shows a chart illustrating how quickly Newpay has grown. From August 2025, the platform really started to gain momentum, and in January 2026 the inflow of TRC USDT to Newpay peaked at over $300 million in a single month. In the following months, the level remained high, with inflows of $180 to $260 million per month.

Bitrace indicates that since its launch, Newpay has received over $1.6 billion in USDT stablecoins. This scale makes it clear that this is not a small criminal network but a professional, well-organised money laundering operation on a large scale. Researchers such as Bitrace, ZachXBT and others closely track the money flows to inform victims and authorities about the scope of such structures.