Secret Service Freezes $52M in Crypto Linked 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.
Xinbi uses 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.
According to blockchain analytics firm Elliptic, Xinbi and its merchants have processed at least $24 billion in transactions since 2022, making it the second-largest illicit online marketplace ever tracked.
The government agents worked with Elliptic to identify and freeze the funds, which were held across 52 wallets tied to Xinbi. Two of those wallets, containing roughly $12 million, were seized outright under a warrant unsealed by the Department of Justice.
Xinbi condemned the 'arbitrary freezing' of its funds and promised to compensate its customers.