The U.S. has seized over $52 million in cryptocurrency from Xinbi and sanctioned its vendors for facilitating scams and laundering funds.
On September 9, the U.S. government announced a significant crackdown on the Xinbi Guarantee marketplace, seizing over $52 million in cryptocurrencies linked to its operations. This action was accompanied by the addition of Xinbi to the sanctions list by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), which classified it as a major transnational criminal organization.
Authorities allege that Xinbi played a crucial role in facilitating scam operations and laundering stolen funds. The Treasury's dedicated task force confiscated two cryptocurrency wallets used by Xinbi, which contained about $12 million in illicit payments. Additionally, law enforcement is working to block 47 other wallets suspected of involvement in money laundering linked to the platform.
The total assets seized surpass $52 million, with the Department of Justice acknowledging the cooperation of Tether, the issuer of USDT, throughout the investigation.
A federal court in Washington, D.C., had also authorized the seizure of Telegram channels associated with Xinbi, which were found to promote fake investment schemes and recruit individuals for scam operations in Southeast Asia.
“Scam centers in Southeast Asia steal billions from American victims every year,” said U.S. Treasury Secretary Scott Bessen.
In addition to Xinbi, two of its technology partners were sanctioned: SafeW Technology from Singapore, the developer of the SafeW messenger, and Anwen Technology from Cambodia, which created the XinbiPay payment app. U.S. assets of these organizations are now subject to blocking, and American individuals are generally prohibited from conducting transactions with them.
Ximbi's Previous Resilience
Since its establishment in 2022, Xinbi has processed over $24 billion in cryptocurrencies and fiat. Following crackdowns on other platforms like Huione, many clients reportedly migrated to Xinbi, which offered similar services. Although Telegram had previously blocked channels related to Xinbi in May 2025, the platform quickly re-emerged, showing a 90% increase in daily receipts, according to a July report by TRM Labs.
Moreover, connections between Xinbi and North Korean hackers have been investigated, with reports indicating funds from the WazirX hack flowing to addresses associated with Xinbi. In June, the U.S. Department of Justice also seized a cloud account linked to Huione Group structures, further highlighting the ongoing scrutiny of these operations.
