Tether's $45 Million Freeze Forces Xinbi into Unfreezable Stablecoin

Tether's crackdown on Xinbi Guarantee has dealt a significant blow to the sanctioned Chinese-language crypto marketplace, freezing over $45 million in USDT across at least 22 operational addresses.

The action targeted not only wallets holding Xinbi-linked funds but also those used for deposits, routing, and withdrawals, as well as third-party operators with financial ties to the marketplace.

Xinbi responded by activating new operational addresses, but these were frozen again within hours, leaving the marketplace struggling to maintain a functioning payment network.

In an effort to evade Tether's controls, Xinbi has begun using USDD, a decentralized stablecoin that operates without address-level control and cannot be frozen. However, this move may not provide long-term relief for the marketplace as law enforcement can still target services and counterparties involved in acquiring, exchanging, and cashing out the token.