Tether Helps DOJ Seize $52M in Crypto Linked to Xinbi Guarantee Scam
The US Department of Justice (DOJ) has credited Tether for its assistance in restraining over $52 million in cryptocurrency tied to Xinbi Guarantee and vendors accused of servicing international scam operations.
The DOJ's Scam Center Strike Force seized two cryptocurrency wallets used by Xinbi to collect vendor payments, holding approximately $12 million, and sought restraint of another 47 wallets believed to be connected to money laundering across the network.
Xinbi operated a Chinese-language Telegram marketplace where vendors offered services to scam-center operators, including money laundering, custom fraudulent investment websites, and recruitment for scam compounds in Southeast Asia. A federal court in Washington authorized the seizure of Xinbi's Telegram channels on September 7.
The Treasury Department also sanctioned Xinbi Guarantee as a significant transnational criminal organization, while OFAC designated two entities accused of supporting Xinbi through digital currency and other financial services. The action extends Washington's pressure on financial infrastructure connected to Southeast Asian scam centers, where cryptocurrency has been used to receive victim funds and move proceeds through cross-border laundering networks.