DOJ Seizes Telegram Channels Used by $24 Billion Crypto Scam Ecosystem

The US Department of Justice (DOJ) has seized the Telegram channels used by Xinbi Guarantee, a Chinese-language marketplace that enabled vendors to sell services to scam operations. The platform processed over $24 billion in digital assets and fiat currency since its inception around 2022.

Xinbi's primary function was escrow, holding payments until vendors completed their work. This assurance allowed buyers to trust that vendors would perform. However, numerous instances have been traced where US victims' funds were linked to specific vendors offering laundering services on the channel.

The DOJ's Scam Center Strike Force, alongside the Treasury Department and the US District Court for the District of Columbia, authorized the seizure of Xinbi's Telegram channels. The Strike Force also froze two cryptocurrency wallets used by Xinbi to collect vendor payments, holding approximately $12 million between them. A total of 47 additional wallets were restrained in connection with laundering across Xinbi's network.

The Office of Foreign Assets Control (OFAC) designated Xinbi as a significant transnational criminal organization. Two enablers, SafeW Technology Co., Ltd and Anwen Technology Co., Ltd, were also designated for materially supporting Xinbi. The designation highlights the platform's connection to North Korean hackers and Chinese crime groups.