US Restrains $52 Million in Crypto Tied to Xinbi Scam Marketplace

US authorities have restrained more than $52 million in crypto linked to Xinbi Guarantee and its network of vendors as part of a broader crackdown on scam operations. The Justice Department’s Scam Center Strike Force seized two wallets holding roughly $12 million used to collect vendor payments, while pursuing restraints against 47 additional wallets connected to alleged money laundering activity across the platform.

Telegram Channels and Infrastructure Seized

A federal court authorized the seizure of Telegram channels used to host the marketplace, where vendors reportedly advertised money laundering services, fraudulent investment websites and recruitment for scam operations based in Southeast Asia. Stablecoin issuer Tether assisted investigators in the case, according to the Justice Department.

Treasury Sanctions Target Broader Support Network

In a coordinated move, the Treasury Department designated Xinbi as a significant transnational criminal organization and sanctioned two technology providers, based in Singapore and Cambodia, accused of supplying encrypted messaging and payment infrastructure to the platform. Treasury officials said Xinbi has processed more than $24 billion in crypto and fiat transactions since 2022, with the platform allegedly used by North Korean hackers and groups tied to previously sanctioned criminal networks. The action follows earlier sanctions imposed by the UK government in March targeting the same marketplace.