In brief
- On September 8, the U.S. Secret Service froze $52.8 million in USDT across 52 wallets associated with Xinbi Guarantee, utilizing intelligence from blockchain analysis firm Elliptic.
- On the same day, the Treasury's Office of Foreign Assets Control (OFAC) identified Xinbi as a "significant transnational criminal organization," while the DOJ's Scam Center Strike Force reported seizing $938 million since its inception in November 2025.
- In response to the freeze, Xinbi criticized the action as "arbitrary" and transferred $2.8 million into USDD, a stablecoin that lacks the freeze capability of USDT, despite its reserves being partially backed by USDT.
The U.S. Secret Service has taken action to freeze $52.8 million in cryptocurrency linked to Xinbi Guarantee, a Telegram-based marketplace known for providing tools for scammers globally. This operation occurred on September 8, with the assistance of blockchain analytics firm Elliptic.
Elliptic has been monitoring Xinbi and its wallet infrastructure for several years, and their intelligence played a crucial role in this freezing operation and the subsequent sanctions against Xinbi by the U.S. government, as stated by the company.
On September 8, at 8 AM UTC, the Secret Service froze assets in 52 wallets, all containing USDT, which is a stablecoin pegged to the U.S. dollar. Among these, two wallets holding approximately $12 million were seized under a warrant recently unsealed by the Department of Justice, while the remaining wallets were frozen for future action.
Xinbi operates as a trust-based marketplace where criminals can engage in transactions, requiring crypto deposits to ensure trust among participants. This unique escrow-like system facilitates various illegal activities, from selling stolen personal information to offering money-laundering services.
Since 2022, Xinbi and its users have been involved in transactions totaling at least $24 billion, according to Elliptic, making it the second-largest illicit online marketplace recorded. The only larger entity was Huione Guarantee, which processed $31 billion before being shut down by Telegram in May 2025 after being exposed by Elliptic.
This closure followed a Treasury report that identified Huione's parent group as a major money laundering risk, leading to Xinbi absorbing much of its traffic once Huione was dismantled.
The illicit funds flowing through such platforms often originate from scams like "pig butchering," where a scammer builds a fake relationship online and lures victims into investing in fraudulent schemes that eventually drain their savings.
On September 9, the Treasury's OFAC classified Xinbi as a transnational criminal organization, a designation typically reserved for drug cartels. Alongside Xinbi, two other companies—SafeW Technology from Singapore and Anwen Technology from Cambodia—were sanctioned for their roles in supporting Xinbi's operations. Previously, the UK had also imposed sanctions on Xinbi in March.
Xinbi reacted to the freeze by denouncing the action as arbitrary and pledging to compensate affected customers.
In a shift, Xinbi appears to be moving from USDT to USDD, a stablecoin introduced by Tron founder Justin Sun that lacks a central authority capable of freezing assets. The marketplace has already converted approximately $2.8 million of its USDT into USDD through a decentralized exchange.
Data Update
Xinbi Guarantee’s business address, activated on September 8, 2026, has faced another freeze, with $1.8 million in USDT already withdrawn and only $37,839 remaining frozen.
On-chain data indicates that the address is undergoing testing… https://t.co/nEfIf4r1Bs pic.twitter.com/kqPjYiQnXn
— Bitrace (@Bitrace_team) September 9, 2026
However, USDD markets itself as decentralized while still having reserves partially linked to USDT, the very asset Xinbi is attempting to evade.
The actions taken on Wednesday were part of a larger initiative by the DOJ's Scam Center Strike Force, which also dispatched agents to Madagascar to assist in dismantling 13 Chinese-operated scam locations and processing evidence from nearly 400 arrests, including over 3,200 seized devices.
Since its establishment in November 2025, the Strike Force has confiscated approximately $938 million in cryptocurrency linked to scams, with Xinbi's remaining balance still in focus.