Blockchain analytics firm Bitrace reportedly says that Fulilai, an online marketplace, removed money-laundering merchants after a US crackdown on a rival network called Xinbi. The reported Fulilai merchant removals are so far attributed to a single source, and the supplied information does not confirm how many merchants were removed or whether the US action caused it.
Key Takeaways
- Bitrace reportedly says Fulilai removed money-laundering merchants.
- The headline places those removals amid a US crackdown on Xinbi.
- The available information does not establish the scale or the cause.
What Bitrace says about Fulilai merchant removals
The core claim is simple. According to unconfirmed reports, Bitrace said that Fulilai removed merchants it linked to money laundering. For related coverage, see U.S. Bank Tests USBDC Stablecoin Payment on Stellar.
Both the removal itself and the money-laundering label come from Bitrace. Money laundering means hiding the origin of illegally obtained funds so they look legitimate. For related coverage, see Binance to End USDP Spot Trading on September 24.
No underlying Bitrace report was supplied. That means no merchant names, no removal dates, and no count of how many merchants were affected. These details matter, and right now they are missing. For related coverage, see Consensys Plans MetaMask Split Into a Standalone Company.
The US crackdown on Xinbi provides the backdrop
The reported removals are framed against a US crackdown on Xinbi Guarantee. On September 9, 2026, the US Treasury’s sanctions office designated Xinbi Guarantee as a significant transnational criminal organization, the Treasury said. For related coverage, see Bitcoin, Ethereum, XRP, Dogecoin Dip as BTC Whales Hold Back.
Treasury said Xinbi had processed the equivalent of over $24 billion in digital assets and regular currency since it started around 2022. That figure is a cumulative processing estimate. It is not money that was seized, and it is not a crypto-only total.
Xinbi’s cumulative processing, according to Treasury
Over $24 billion
Treasury said the action was coordinated with the Justice Department’s Scam Center Strike Force. That team seized infrastructure and digital asset wallets used by Xinbi Guarantee that same day. The announcement does not state a seizure value.
Two supporting entities were also designated: Singapore-based SafeW Technology Co., Ltd. and Cambodia-based Anwen Technology Co., Ltd. Treasury said Xinbi began moving its merchant and money-laundering networks to the SafeW messaging app around June 2025, and launched a payment app called XinbiPay, also known as the NewPay wallet.
Sanctions carry a wide reach. Treasury said entities owned 50 percent or more by blocked persons, alone or together, are also blocked. In plain terms, US people and companies generally cannot do business with these named targets.
The US was not first. The UK sanctioned Xinbi on March 26, 2026, describing it as a Chinese-language marketplace that provided crypto-based services to Southeast Asian scam centers, the UK government said.
One point is important. None of these official announcements name Fulilai or Bitrace. The crackdown context is real, but it is separate from the reported Fulilai removals, and the headline alone does not prove the US action caused them.
What remains unclear about the reported removals
The gaps are large. The supplied context gives no merchant count, no transaction value, no method behind Bitrace’s finding, and no response from Fulilai or Xinbi.
To judge Bitrace’s claim fairly, a reader would need its underlying evidence. Without the original report, the scale and timing of the removals stay unspecified.
There is also no evidence on the outcome. It is unknown whether the removals actually disrupted money laundering, or simply pushed the activity to another platform.
For a regular crypto holder, the practical takeaway is narrow. Sanctions like these target illicit networks, not ordinary users, and stablecoins such as those tracked in USDT trading pairs on major exchanges keep functioning normally. Treat the Fulilai removal story as a lead worth watching, not a confirmed fact.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
