$52M in cryptocurrency frozen as US targets Xinbi fraud platform with sanctions
Federal prosecutors took control of Xinbi's Telegram communication channels and two digital wallets while tracking down 47 more wallets throughout what they allege is an extensive money laundering operation.
Federal law enforcement agencies in the United States have frozen over $52 million in cryptocurrency assets connected to Xinbi Guarantee and the network of vendors associated with it through a coordinated enforcement action targeting the fraudulent marketplace.
The US Justice Department announced on Wednesday that its Scam Center Strike Force took possession of two digital wallets that Xinbi utilized for collecting payments from vendors, which held approximately $12 million. Additionally, authorities pursued restraining orders for 47 more wallets that investigators believe are tied to money laundering activities throughout the Xinbi network.
According to the DOJ, the US District Court for the District of Columbia granted authorization for the seizure of Telegram channels that were hosting the marketplace on Sept. 7. The warrant, which has been unsealed, reveals that vendors utilized these channels for promoting money laundering services, creating customized scam-investment platforms, and recruiting personnel for fraudulent operations based in Southeast Asian compounds.
This enforcement operation is designed to dismantle the financial infrastructure and communication systems that enable large-scale scam operations, representing an expanded approach to enforcement that goes beyond targeting individual fraudsters to include the marketplaces and service providers that enable these networks to operate. The DOJ acknowledged the cooperation of Tether, the stablecoin issuer, in supporting the investigation.
Treasury sanctions Xinbi and technology providers
As part of a simultaneous enforcement effort on Wednesday, the US Treasury Department announced that its Office of Foreign Assets Control (OFAC) has designated Xinbi as a significant transnational criminal organization. OFAC additionally imposed sanctions on SafeW Technology, which operates out of Singapore, and Cambodia-based Anwen Technology, alleging that both companies provided technological infrastructure and financial assistance to Xinbi.
The Treasury's findings indicate that Xinbi started transitioning its merchant operations and money-laundering networks to SafeW's encrypted messaging platform around June 2025 in response to increasing law-enforcement attention. Anwen is accused of creating XinbiPay, which is also referred to as NewPay, a cryptocurrency wallet and payment application that the marketplace employed.
Treasury officials stated that Xinbi has facilitated transactions totaling more than $24 billion in both cryptocurrency and traditional fiat currency since approximately 2022, with the majority of activity concentrated in Southeast Asia. The department indicated that the platform has been utilized by hackers from North Korea and organizations linked to the sanctioned Prince Group.
The imposed sanctions freeze all US property and interests belonging to Xinbi and generally prevent US persons from conducting any transactions with the designated entities.
This most recent enforcement action by US authorities comes after the United Kingdom imposed its own sanctions against Xinbi. On March 26, the UK government implemented sanctions targeting Xinbi with the objective of severing the platform's access to cryptocurrency services. These sanctions mandate that any UK assets associated with Xinbi will be frozen, and the platform will be prohibited from accessing the country's financial systems, trade networks, and travel infrastructure.