U.S. DOJ Seizes Xinbi Guarantee Marketplace, Freezes $52.8 Million in Cryptocurrency

The U.S. Department of Justice (DoJ) has announced coordinated enforcement actions against Xinbi Guarantee, an illicit online marketplace accused of providing services to scam centers and organized crime groups involved in cryptocurrency fraud, money laundering, and other criminal activities.

As part of the operation, authorities seized Telegram channels used to operate Xinbi Guarantee and confiscated two cryptocurrency wallets. The U.S. Scam Center Strike Force also expanded its international operations to Madagascar, where it helped disrupt 13 scam compounds allegedly operated by Chinese organized crime syndicates.

Approximately $52.8 million worth of cryptocurrency linked to Xinbi Guarantee and its network of merchants has been frozen. The DoJ said around $52 million in cryptocurrency involved in scam-related money laundering was restrained in a single day, bringing the total cryptocurrency restrained by the Scam Center Strike Force to approximately $938 million.

Xinbi Guarantee Linked to Global Scam Operations

Xinbi Guarantee is a Telegram-based illicit marketplace that became prominent following the closure of other underground marketplaces, including HuiOne Guarantee and Tudou Guarantee.

According to U.S. authorities and blockchain analytics firm Elliptic, Xinbi operated as an intermediary between vendors and scam-center operators. The marketplace allegedly provided services including fraudulent investment websites, cryptocurrency laundering, stolen personal information, and recruitment of trafficking victims for scam compounds in Southeast Asia.

The platform reportedly enabled operators running so-called pig-butchering scams, in which victims are manipulated through relationships or investment opportunities before being persuaded to transfer large amounts of money or cryptocurrency.

"Once a scammer 'purchases' a service from the vendor, Xinbi as an organization holds money to be paid to the vendor until the vendor's services are complete," the U.S. Department of Justice said.

$30 Billion in Transactions

Elliptic estimates that Xinbi Guarantee has processed approximately $30 billion in transactions since its emergence around 2022, making it one of the largest illicit marketplaces connected to the global scam-center ecosystem.

The marketplace has also reportedly been used by North Korean hackers and entities previously sanctioned by the U.S. Treasury Department, including organizations linked to the Prince Group transnational criminal organization.

The Treasury Department's Office of Foreign Assets Control (OFAC) has separately sanctioned Chinese-language media associated with cyber scams, fraud, money laundering, and other criminal activities targeting Americans.

Telegram Channels and Crypto Wallets Seized

The Justice Department said authorities seized Telegram channels associated with Xinbi Guarantee and banned related usernames.

Investigators also seized two cryptocurrency wallets that Xinbi allegedly used to collect payments from vendors. Those wallets reportedly contained approximately $12 million in cryptocurrency.

In total, authorities froze cryptocurrency from 52 wallets associated with Xinbi Guarantee and merchants operating within its network.

U.S. officials said the action is intended to disrupt the financial infrastructure supporting international scam centers rather than simply targeting individual scammers.

Scam Center Strike Force Expands to Madagascar

Alongside the Xinbi operation, the U.S. Scam Center Strike Force conducted operations against scam compounds in Madagascar.

Authorities disrupted 13 scam centers, seized more than 3,200 electronic devices, and opened investigations based on interviews with nearly 400 people who were arrested.

Approximately 30 individuals described as Chinese leaders of the scam compounds were reportedly repatriated to China by the Chinese government.

The Justice Department said the Scam Center Strike Force will continue expanding its operations to target scam-center compounds around the world.

Xinbi Switches From USDT to USDD

Historically, Xinbi Guarantee's transactions were primarily conducted using Tether's USDT stablecoin on the TRON blockchain.

Following the asset freezes, Xinbi reportedly began moving some of its remaining funds from USDT into USDD, another stablecoin designed to maintain a value close to the U.S. dollar.

Elliptic said Xinbi exchanged approximately $2.8 million in USDT for USDD through a decentralized exchange.

Unlike USDT, which has mechanisms allowing Tether to freeze specific wallets, USDD does not have a central issuer with the same direct freezing capability. However, Elliptic noted that USDD remains exposed to freezing risks because part of its collateral is linked to USDT.

Major Blow to the Underground Scam Economy

Elliptic described the enforcement action as a severe setback for the illicit marketplace ecosystem.

The freezing of cryptocurrency wallets and seizure of Xinbi's infrastructure could make criminals more cautious about using centralized underground marketplaces because their transactions and wallet addresses may be identified and frozen by law enforcement.

The latest operation highlights the growing role of cryptocurrency tracing and blockchain intelligence in international cybercrime investigations.

U.S. authorities have increasingly targeted the financial infrastructure behind online fraud operations, particularly networks supporting cryptocurrency investment scams, romance scams, money laundering, and scam compounds operating across Southeast Asia and other regions.

The Xinbi Guarantee takedown represents another major effort to disrupt the infrastructure that enables large-scale online scams and prevent criminal organizations from moving and laundering funds through cryptocurrency.