The U.S. Secret Service, utilizing intelligence from blockchain analytics firm Elliptic, froze $52.8 million in USDT across 52 wallets linked to Xinbi Guarantee on September 8. Two of these wallets, containing approximately $12 million, were seized by the Department of Justice under a warrant. The remaining funds were frozen pending further action.
Xinbi Guarantee operates as a Chinese-language escrow system on Telegram, providing tools for global scams, including the sale of stolen personal data and money-laundering services. According to Elliptic, the platform and its merchants have processed at least $24 billion in transactions since 2022, making it the second-largest illicit online marketplace ever tracked.
The U.S. Treasury's Office of Foreign Assets Control (OFAC) designated Xinbi as a transnational criminal organization on September 9, a category typically used for drug cartels. Additionally, Singapore-based SafeW Technology and Cambodia-based Anwen Technology were sanctioned for supporting Xinbi's operations. The UK had previously sanctioned the platform in March.
In response to the freeze, Xinbi condemned the action as arbitrary and began shifting its remaining funds into USDD, a stablecoin launched by Tron founder Justin Sun. The platform swapped approximately $2.8 million of its USDT into USDD via a decentralized exchange to avoid central issuer freezes.
The operation was part of a broader effort by the DOJ's Scam Center Strike Force, which has seized approximately $938 million in scam-linked cryptocurrency since its launch in November 2025. This effort also included deploying agents to Madagascar to help local authorities dismantle 13 Chinese-run scam compounds, resulting in nearly 400 arrests and the seizure of over 3,200 devices.