DOJ Restrains $52 Million in Crypto Tied to Chinese Scam Marketplace Xinbi

Source Beincrypto

US authorities have restrained roughly $52 million in scam-linked crypto in a single day and seized the Telegram channels of Xinbi Guarantee, a Chinese-language illicit marketplace.

Elliptic says its multi-year tracking of Xinbi’s wallets enabled the Secret Service to act. Treasury sanctions landed the same day.

Inside the $24 Billion Xinbi Guarantee Economy

Xinbi is a Chinese-language marketplace that runs on Telegram and sells services to scam center operators. Vendors advertise custom fraud websites, money laundering, and recruitment for compounds in Southeast Asia.

Elliptic exposed the operation in May 2025. The firm now counts at least $24 billion in transactions since 2022, second only to Huione Guarantee, which handled $31 billion before shutting down in 2025.

A linked payments arm, Xinbi Pay, has processed another $6 billion. Most of that flowed in Tether (USDT) on the TRON blockchain. The United Kingdom sanctioned Xinbi in March 2026.

Follow us on X to get the latest news as it happens

Xinbi Turns to USDD After the Freeze

Prosecutors seized two Xinbi payment wallets containing about $12 million and moved against 47 more, according to the Justice Department, which credited Tether for its help.

“After scamming money from hardworking Americans, criminals operating overseas laundered it through the Xinbi Guarantee network, which operated under the false assumption that they were out of the reach of U.S. law enforcement,” Tara McLeese, Special Agent of the US Secret Service, said.

The Office of Foreign Assets Control designated Xinbi a significant transnational criminal organization on the same day. It separately designated two entities that supported the marketplace.

Prosecutors also announced a Madagascar deployment, where authorities dismantled 13 Chinese-run compounds and arrested nearly 400 people. Strike Force agents spent two weeks assisting and processing more than 3,200 devices.

Xinbi condemned what it called arbitrary freezing and promised to compensate customers. It then swapped roughly $2.8 million of leftover USDT into Decentralized USD (USDD), a stablecoin with no issuer freeze function.

That escape route has limits, since Elliptic notes USDD is partly backed by freezable USDT. Guarantee marketplaces run on trust, and merchants now know their deposits can vanish without warning.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bank of America Sets a New Target For Gold Price By the End of 2026Bank of America (BofA) expects gold below $4,000 over the next three months. The bank forecasts an average of $4,000 per ounce in the fourth quarter.Gold traded around $4,100 on Wednesday after hotter
Author  FXStreet
Oct 15, Thu
Bank of America (BofA) expects gold below $4,000 over the next three months. The bank forecasts an average of $4,000 per ounce in the fourth quarter.Gold traded around $4,100 on Wednesday after hotter
placeholder
What History Says Happens After Chip Stocks Have a Week This BadBTIG has told investors to use any rebound in semiconductor stocks to cut their exposure. The firm expects a drawn-out decline in the sector that could stretch into 2027.The warning followed an 11.4%
Author  Beincrypto
Oct 20, Tue
BTIG has told investors to use any rebound in semiconductor stocks to cut their exposure. The firm expects a drawn-out decline in the sector that could stretch into 2027.The warning followed an 11.4%
placeholder
Will Brent Jump 28% Again? US and Israel Draft Post-Midterm Iran Strike PlansThe US and Israel have drafted plans for Iran strikes after the Nov. 3 midterms, The New York Times reports. Energy sites appear on the reported target list, with Brent crude already near $109 a barre
Author  Beincrypto
Yesterday 01: 44
The US and Israel have drafted plans for Iran strikes after the Nov. 3 midterms, The New York Times reports. Energy sites appear on the reported target list, with Brent crude already near $109 a barre
placeholder
Is Bitcoin on the Verge of a Deeper Correction? The S&P 500 May Hold the AnswerBitcoin is consolidating near $82,000 to $83,000 after retreating from recent highs above $87,000. A new CryptoQuant analysis warns that the S&P 500 is showing similar weakness.Analysts are split on w
Author  Beincrypto
Yesterday 01: 48
Bitcoin is consolidating near $82,000 to $83,000 after retreating from recent highs above $87,000. A new CryptoQuant analysis warns that the S&P 500 is showing similar weakness.Analysts are split on w
placeholder
Market News Today Australia: Nasdaq Rallies, Gold Rebounds as Meta Earnings BeatNasdaq rises 1.05%, Meta reports strong earnings and gold rebounds. Explore today's Australian market outlook for oil, AUD/USD and the ASX 200.
Author  Mitrade Team
Yesterday 03: 12
Nasdaq rises 1.05%, Meta reports strong earnings and gold rebounds. Explore today's Australian market outlook for oil, AUD/USD and the ASX 200.
goTop
quote