US DOJ and Treasury 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 Disruption Strike 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 DOJ alleged that Xinbi is an illegal fraud service marketplace primarily operating via Telegram, providing customized investment scam websites and money laundering services to fraud rings, and recruiting human trafficking victims to work in scam compounds in Southeast Asia. Law enforcement has seized its Telegram channel and two crypto wallets holding a combined approximately $12 million, and restricted 47 other related wallets.

The U.S. Treasury's Office of Foreign Assets Control simultaneously designated Xinbi as a significant transnational criminal organization and sanctioned two other entities supporting it. The task force also assisted Madagascar in shutting down 13 scam compounds operated by Chinese criminal gangs, processing over 3,200 electronic devices, and leading to nearly 400 arrests locally.