$52 Million in Crypto Assets Frozen as US Takes Down Xinbi Guarantee Scam Network
The US Department of Justice has restrained approximately $52 million in crypto assets tied to Xinbi Guarantee, a Chinese-language illicit marketplace. The funds were frozen following a multi-year tracking effort by Elliptic that enabled authorities to act. Treasury sanctions were also imposed on the same day.
Xinbi Guarantee is a marketplace that operates on Telegram and offers services to scam center operators. Vendors advertise custom fraud websites, money laundering, and recruitment for compounds in Southeast Asia. Since 2022, Xinbi has processed at least $24 billion in transactions, with most of it flowing through the TRON blockchain via Tether (USDT).
The Justice Department credited Tether for its help in seizing two Xinbi payment wallets containing around $12 million and taking action against 47 more wallets. The Office of Foreign Assets Control designated Xinbi a significant transnational criminal organization on the same day.