DOJ seizes $52 million in crypto targeting Xinbi Guarantee marketplace

The U.S. Department of Justice’s Scam Center Strike Force has restrained approximately $52 million in cryptocurrency in a single day during an operation targeting the Xinbi Guarantee scam marketplace. This action brings the total amount of scam-linked cryptocurrency restrained by the strike force to roughly $938 million.

Xinbi Guarantee reportedly operated through Telegram, providing an escrow-like service where the platform held payments until vendors completed criminal services. These services included money laundering, fraudulent investment schemes, and technical assistance. Investigators found that funds from U.S. victims were directed to vendors on the platform. The Treasury Department also flagged reports that the marketplace was used by North Korean hackers.

During the operation, authorities seized two cryptocurrency wallets containing about $12 million and sought restraints on 47 additional wallets suspected of being tied to money laundering. The crackdown involved assistance from Tether and targeted the marketplace’s communication and payment networks. Some vendors on the platform have also been linked to recruitment activities for scam compounds and human trafficking in Southeast Asia.