The U.S. Department of Justice cracks down on the Xinbi scam service market, seizing $52 million in cryptocurrency assets

According to a notice from the U.S. Department of Justice, the Department's Fraud Center Strike Force, in coordination with the Department of the Treasury, took coordinated law enforcement action against Xinbi Guarantee, seizing and restricting the disposal of over 52 million dollars in cryptocurrency in a single day, bringing the total assets restricted by the task force to approximately 938 million dollars. Tether provided proactive assistance in this investigation.

The Department of Justice alleges that Xinbi is an illegal scam service market primarily operating through Telegram, providing customized investment scam websites, money laundering services, and recruiting victims of human trafficking to work in scam parks in Southeast Asia. Law enforcement has seized its Telegram channel and two cryptocurrency wallets holding approximately 12 million dollars, and restricted the disposal of an additional 47 related wallets.

At the same time, the U.S. Department of the Treasury's Office of Foreign Assets Control designated Xinbi as a significant transnational criminal organization and sanctioned two additional entities that support it. The task force also assisted Madagascar in shutting down 13 scam parks operated by Chinese criminal groups, processing over 3,200 electronic devices, and local authorities arrested nearly 400 people.