US Cracks Down on Xinbi Scam Marketplace with $52M Crypto Freeze
The US Justice Department has restrained over $52 million in crypto linked to Xinbi Guarantee and its vendor network as part of a coordinated operation against the scam marketplace.
Law enforcement seized two wallets used by Xinbi to collect vendor payments containing about $12 million, while also seeking restraints against 47 additional wallets believed to be connected to money laundering across Xinbi’s network.
The US District Court for the District of Columbia authorized the seizure of Telegram channels hosting the marketplace on September 7. According to the unsealed warrant, vendors used the channels to advertise money laundering, custom scam-investment websites and recruitment services for scam compounds in Southeast Asia.
The Treasury Department's Office of Foreign Assets Control (OFAC) designated Xinbi as a significant transnational criminal organization, along with Singapore-based SafeW Technology and Cambodia-based Anwen Technology for allegedly providing technological and financial support to Xinbi.