Xinbi Guarantee sanctioned by U.S. for crypto-enabled cybercrime

The U.S. Treasury and Department of Justice have sanctioned and moved to dismantle Xinbi Guarantee, a Chinese-language online marketplace identified as a major hub for cyber scams, fraud, and money laundering. Authorities state the platform has processed more than $24 billion in cryptocurrency and fiat since 2022.

Xinbi operated as an escrow marketplace on Telegram, connecting scam operators with vendors who provided services such as building fraudulent investment websites, laundering stolen funds, and recruiting victims to staff scam compounds. The Treasury designated Xinbi a transnational criminal organization, freezing its U.S.-based assets.

In a coordinated effort, the DOJ Scam Center Strike Force seized Xinbi’s Telegram infrastructure and restrained approximately $52 million in cryptocurrency. This included the seizure of two wallets containing roughly $12 million, while authorities sought to freeze an additional 47 wallets. Investigators noted that the platform facilitated laundering through a substitution method, where specialized vendors replaced traceable, North Korean-linked stolen funds with stablecoins from other illicit revenue streams, such as romance scams, to make the funds harder to track.