U.S. Department of Justice Teams Up with Treasury to Crack Down on Xinbi Guarantee, Restricting Over $52 Million in Crypto Assets in a Single Day

Odaily News The U.S. Department of Justice announced that its Fraud Suppression Task Force, in coordination with the Treasury Department, took coordinated enforcement action against Xinbi Guarantee, seizing and restricting over $52 million in crypto assets in a single day, bringing the total assets restricted by the task force to approximately $938 million. Tether provided proactive assistance in this investigation.

The Department of Justice alleged that Xinbi operates as an illegal fraud service marketplace primarily run through Telegram, providing custom investment scam websites and money laundering services to fraud rings, while also recruiting human trafficking victims to work in scam compounds across Southeast Asia. Law enforcement has seized its Telegram channels and two crypto wallets holding a combined approximately $12 million, and restricted 47 additional related wallets.

The U.S. Treasury Department's Office of Foreign Assets Control has simultaneously designated Xinbi as a Significant Transnational Criminal Organization and sanctioned two other entities providing support to it. The task force also assisted Madagascar in shutting down 13 scam compounds operated by Chinese criminal groups, processing over 3,200 electronic devices and leading to nearly 400 local arrests.