US Authorities Seize Over $52 Million in Crypto Linked to Global Scam Marketplace Xinbi

United States authorities have executed a significant coordinated operation, resulting in the restraint of over $52 million in cryptocurrency assets connected to Xinbi Guarantee and its extensive vendor network. This action, aimed at dismantling a major scam marketplace, was announced by the US Justice Department on Wednesday.

The Justice Department’s Scam Center Strike Force successfully seized two cryptocurrency wallets utilized by Xinbi for collecting payments from vendors. These wallets contained approximately $12 million. In addition to these direct seizures, law enforcement has initiated proceedings to restrain 47 other wallets, which are believed to be involved in money laundering activities across Xinbi’s operational network.

According to an unsealed warrant, the US District Court for the District of Columbia authorized the seizure of Telegram channels that were instrumental in hosting the Xinbi marketplace. These channels, seized on September 7, served as crucial hubs where vendors advertised a range of illicit services. These included money laundering operations, the creation of custom scam-investment websites, and the recruitment of individuals for scam compounds, particularly in Southeast Asia. This operation highlights a strategic shift in enforcement, moving beyond targeting individual scam operators to disrupt the underlying financial and communication infrastructure that supports industrial-scale scam centers. The Justice Department acknowledged the valuable assistance provided by stablecoin issuer Tether in facilitating this investigation.

In a parallel and coordinated effort, the US Treasury Department’s Office of Foreign Assets Control (OFAC) took action on Wednesday, designating Xinbi as a significant transnational criminal organization. OFAC also imposed sanctions on two technology providers: Singapore-based SafeW Technology and Cambodia-based Anwen Technology. These entities are accused of providing essential technological and financial support to Xinbi, enabling its illicit operations.

The Treasury Department’s investigation revealed that Xinbi began migrating its merchant and money-laundering networks to SafeW’s encrypted messaging application around June 2025, a move that coincided with increased law enforcement scrutiny. Furthermore, Anwen Technology is alleged to have developed XinbiPay, also known as NewPay, a cryptocurrency wallet and payment application that was widely used by the Xinbi marketplace for its transactions.

Ari Redbord, TRM Labs Global Head of Policy, commented on the significance of OFAC’s sanctions, stating, "OFAC sanctioned Xinbi for good reason. When Huione went down, Xinbi became the go-to escrow and cash-out layer for Southeast Asia’s scam compounds and did it at industrial scale, moving more than USD 36 billion." This statement underscores Xinbi’s pivotal role in the illicit cryptocurrency ecosystem, particularly in facilitating large-scale fraud operations in the region.

The Treasury Department further detailed that Xinbi has processed over $24 billion in cryptocurrency and fiat currency transactions since approximately 2022, with a primary focus on operations within Southeast Asia. The department also indicated that Xinbi’s platform has been exploited by North Korean hackers and entities associated with the sanctioned Prince Group, highlighting the breadth of criminal elements utilizing the marketplace. The imposed sanctions will freeze any US property and interests belonging to Xinbi and its associated entities, and generally prohibit US persons from engaging in any transactions with them.

This latest action by the United States follows similar measures taken by the United Kingdom. On March 26, the UK government also imposed sanctions against Xinbi with the explicit aim of restricting its access to cryptocurrency services. These UK sanctions involve freezing UK-based assets linked to Xinbi and barring the platform from accessing the country’s financial, trade, and travel networks.

The coordinated efforts by the US and UK represent a significant blow to the global illicit finance landscape, targeting the infrastructure and enablers of sophisticated cryptocurrency-based scams. The focus on marketplaces and service providers like Xinbi signifies a strategic escalation in the fight against cybercrime, aiming to dismantle these operations at their core.