The U.S. Secret Service has frozen $52.8 million in USDT linked to Xinbi Guarantee, a major player in online scams, as part of a broader crackdown on illicit cryptocurrency activities.
The U.S. Secret Service has frozen approximately $52.8 million in USDT across 52 different wallets associated with Xinbi Guarantee, a marketplace known for facilitating scams, on September 8. This action was supported by intelligence from blockchain analysis firm Elliptic.
On the same day, Xinbi was designated as a "significant transnational criminal organization" by the Treasury's Office of Foreign Assets Control (OFAC). Since its inception in November 2025, the DOJ's Scam Center Strike Force has seized around $938 million related to various scams.
Xinbi criticized the asset freeze, labeling it as arbitrary. In response to the measures, the marketplace has transitioned $2.8 million into USDD, a stablecoin without asset-freezing capabilities, while still partially backed by USDT.
According to Elliptic, Xinbi has engaged in at least $24 billion in transactions since 2022, ranking it as the second-largest illicit online marketplace, following Huione Guarantee, which was shut down in May 2025 after significant scrutiny.
Xinbi operates as a trust-based marketplace for criminals, requiring deposits that ensure trust among users. Its activities have included the trading of stolen personal data and money laundering services. Following Huione’s dismantling, Xinbi absorbed much of the traffic that had previously gone there.
Following the asset freeze, the OFAC’s classification of Xinbi as a transnational criminal organization further cements its status in illicit activities. This designation typically applies to serious criminal entities like drug cartels. Alongside Xinbi, two other companies, SafeW Technology and Anwen Technology, were also sanctioned.
Xinbi's reactions include denouncing the actions taken against them while promising to reimburse affected customers. They have begun shifting their assets to USDD in an attempt to evade future freezes. Despite marketing itself as decentralized, USDD's reserves remain partially tied to USDT, the very asset Xinbi seeks to dissociate from.
This freeze is part of a broader initiative by the DOJ’s Scam Center Strike Force, which has seen agents dispatched internationally, including Madagascar, where 13 scam operations have been targeted and nearly 400 arrests made.
