US authorities have launched a coordinated operation against the Xinbi Guarantee marketplace, resulting in the restraint of over $52 million in cryptocurrency. The Department of Justice, through its Scam Center Strike Force, seized two wallets containing approximately $12 million and initiated efforts to restrain 47 additional wallets linked to the platform's money laundering network.
On September 7, the US District Court for the District of Columbia authorized the seizure of Telegram channels used by Xinbi to host its marketplace. These channels reportedly facilitated advertising for money laundering services, custom investment scam websites, and recruitment for scam operations in Southeast Asia. The investigation was supported by stablecoin issuer Tether.
The US Treasury Department’s Office of Foreign Assets Control designated Xinbi as a significant transnational criminal organization. Sanctions were also imposed on Singapore-based SafeW Technology and Cambodia-based Anwen Technology for providing financial and technical support. Anwen is accused of developing the XinbiPay wallet, while SafeW provided encrypted messaging services for the network.
According to the Treasury, Xinbi has processed more than $24 billion in crypto and fiat transactions since 2022, with activity involving North Korean hackers and entities linked to the Prince Group. The current US sanctions prohibit American citizens from conducting transactions with the designated entities and block any US-based property or interests held by them.
This enforcement action follows similar measures taken by the UK government on March 26. The UK sanctions aimed to restrict Xinbi's access to the crypto market by freezing associated assets and barring the platform from the country's financial, trade, and travel networks.
