Since 2025, second-tier Southeast Asian illegal cryptocurrency transaction guarantee platforms, with Xinbi Guarantee as the archetypal case, have begun emulating the now-shuttered Huione Guarantee by launching proprietary cryptocurrency payment tools. These tools are broadly used to serve guarantee platform clients, including black and gray market operators engaged in online gambling, money laundering, fraud, human trafficking, and other illicit activities.

This article uses the July 7, 2026 case of a Gate user who lost $1.75 million to illustrate the money laundering chain involved and to provide a brief introduction to Newpay, the crypto payment tool operated by Xinbi Guarantee.

Case Description

The incident took place between July 4 and 7, 2026. Victim @jheioff reported that their identity-verified account was compromised, resulting in the loss of 49.96 ETH, 746,475 HSK, and 1,565,982 USDT, with a total value of approximately $1.7 million. The funds were withdrawn to a new address, and the user only discovered the breach and filed a report on July 8.

The attacker circumvented nearly all of the victim's liveness verification tools, including but not limited to—

July 4: The attacker reset the phone and email on a new device, passing liveness facial recognition and multi-factor verification code checks;

July 5: Again passed facial recognition verification and submitted multiple historical transaction records dating back to 2019, successfully unlinking the phone number;

July 6: Modified Google Authenticator, login password, and fund password;

July 7: Logged in on a historical device, passed liveness verification, Google Authenticator, and fund password checks multiple times, and completed five withdrawals.

This incident caused a significant uproar across the crypto community.

Introduction to Newpay

Bitrace conducted an on-chain investigation into this incident.

The results show that the attacker's money laundering chain was relatively straightforward. After withdrawing the victim's funds, the attacker transferred the illicit proceeds in multiple tranches into a single Newpay User address.

This entity is Newpay, the crypto payment tool launched by Xinbi Guarantee. Its predecessor was Xinbi Wallet, a non-KYC payment tool based on Telegram Bot launched in 2025. After the self-developed Xinbipay application went live, the Telegram Bot channel was shut down and users were migrated to the mobile application. The service was ultimately renamed Newpay to evade regulatory scrutiny.

According to Bitrace's monitoring, the entity has recorded total inflows exceeding $1.6 billion USDT since commencing operations, with its business scale experiencing significant growth following the collapse of the Huione Group in late 2025.

Guarantee-Associated Payment Tools

Xinbi Guarantee was not the sole beneficiary of the Prince Group's downfall. Former second-tier guarantee platforms such as Jinbei Guarantee, Dali Guarantee, and Fullylight Guarantee also seized their share of the spoils.

According to disclosures in Bitrace's '2026 Investigation Report on Illegal Cryptocurrency Transaction Guarantee Platforms,' the business volume of associated payment tools such as OKPay, Fullylight Wallet, and X Wallet all registered substantial increases.

This indicates that crackdowns by national governments on organized criminal networks in Southeast Asia have not been entirely successful. A portion of illegal transactions has gone underground or spilled over to competing entities.

Conclusion

Unlike the Huione Group, which professionally managed its business addresses—maintaining clear fund flows and well-structured address clusters that facilitated on-chain tracing and flagging—emerging players such as the Xinbi Group are deploying a variety of obfuscation schemes to disrupt on-chain tracking. This poses heightened challenges for law enforcement investigators and enterprise risk management personnel. 

As a leading regulatory technology company in the Asia-Pacific region, Bitrace possesses years of experience in law enforcement collaboration and intelligence collection. We have now achieved systematic monitoring of organized criminal networks in East and Southeast Asia, and have launched Bitrace Pro, an on-chain investigation tool serving law enforcement personnel, as well as Bitrace AML, a KYT tool serving enterprise risk management teams. Please contact us to obtain a trial quota.

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