Tether Cracks Down on Xinbi Guarantee, Freezing $45 Million in USDT

Tether's recent crackdown on Xinbi Guarantee has frozen over $45 million in USDT across at least 22 operational addresses linked to the sanctioned marketplace. This action is part of a broader effort to disrupt Xinbi's ability to move money, targeting not only wallets holding funds but also those used for deposit, routing, and withdrawal.

The freeze extends beyond Xinbi itself, affecting third-party operators with financial ties to the marketplace. One such operator, an OTC platform, processed over $72 million in USDT in the preceding year, while another had deposits totaling less than $850,000 through Xinbi.

Xinbi responded by activating new operational addresses, but these were also frozen again on September 8, less than 12 hours after the initial action. This suggests that Tether's efforts are aimed at cutting off Xinbi's financial lifelines rather than just immobilizing existing assets.