Secret Service Freezes $52.8 Million in Crypto Tied to Global Scam Marketplace
The U.S. Secret Service has frozen $52.8 million in cryptocurrency tied to Xinbi Guarantee, a Chinese-language marketplace on Telegram that facilitates global scams. The freeze was carried out using intelligence from blockchain analytics firm Elliptic and occurred on September 8.
Xinbi is an escrow system where vendors post crypto deposits so operators trust they'll get what they paid for, from stolen personal data to money-laundering services. Since 2022, Xinbi and its merchants have processed at least $24 billion in transactions, making it the second-largest illicit online marketplace ever tracked.
The Treasury's Office of Foreign Assets Control designated Xinbi as a transnational criminal organization on September 9, and two more firms were sanctioned for supporting Xinbi's operations. The U.S. Secret Service also seized two wallets containing roughly $12 million under a warrant unsealed by the Department of Justice.