UK Designates $21 Billion Crypto Black Market Platform as Enabler of Crime

A top UK financial regulator has designated the encrypted messaging app Telegram, along with its subsidiary XRP2Y, for allegedly enabling a $21 billion illicit cryptocurrency black market run by sanctioned Chinese businessman Xu Zhilin. Xu Zhilin’s Xinbi Guarantee, which is being described by regulators as “a global money laundering platform”, was blacklisted by the UK’s Financial Conduct Authority (FCA) earlier this month. Despite the designation, Telegram continues to host a mirror website of the black market platform. According to reports, Xu Zhilin’s business empire has been accused of facilitating human trafficking, cybercrime and other illicit activities, with the UK FCA describing Xinbi Guarantee as an “enabler” of these crimes. The regulator claims that Xu Zhilin’s operation has laundered billions of dollars in illicit funds for his associates. The designation of Xinbi Guarantee marks a significant escalation in the global efforts to combat cryptocurrency-based money laundering and other financial crimes. It also highlights concerns over Telegram’s lax moderation policies, which have been criticized by regulators and lawmakers for allowing illicit activities to flourish on its platform.