U.S. Treasury Dismantles Xinbi Guarantee: Inside the $24 Billion Crypto Fraud Operation

Key Takeaways

• Federal authorities imposed sanctions on Xinbi Guarantee, a Chinese-language digital marketplace exploited by criminals for cryptocurrency-based fraud schemes
• Since its 2022 inception, Xinbi facilitated over $24 billion in cryptocurrency and traditional currency transactions, with operations concentrated in Southeast Asia
• Federal prosecutors confiscated two digital wallets holding $12 million and pursued legal action against 47 additional wallets, bringing total restrained assets to over $52 million
• The platform maintained connections to North Korean cyber operatives, the Prince Group criminal organization, and money laundering rings operating through Telegram
• Sanctions also targeted SafeW Technology (Singapore) and Anwen Technology (Cambodia), two technology companies that provided infrastructure support to Xinbi

On Wednesday, the United States Treasury Department imposed sanctions against Xinbi Guarantee, an online platform accused of orchestrating extensive cryptocurrency-related criminal enterprises. The announcement came as part of a multi-agency collaborative enforcement action.

Operating as a Chinese-language digital marketplace since approximately 2022, Xinbi has facilitated more than $24 billion in financial transactions, with a substantial portion conducted through cryptocurrency channels, as reported by the Treasury’s Office of Foreign Assets Control.

Authorities allege the platform enabled fraudulent call centers throughout Southeast Asia to procure operational supplies and cleanse illicit proceeds. The marketplace reportedly provided services to North Korean cyber criminals and organizations connected to the previously sanctioned Prince Group.

Federal Prosecutors Confiscate Digital Assets and Communication Channels

The Justice Department’s Scam Center Strike Force confiscated two cryptocurrency wallets that Xinbi utilized for collecting vendor payments. These digital wallets contained approximately $12 million in various cryptocurrencies.

Federal officials additionally obtained judicial authorization to freeze 47 more cryptocurrency wallets associated with money laundering activities throughout Xinbi’s broader operational network. Collectively, authorities restrained or seized more than $52 million in digital assets.

On September 7, a United States District Court approved the seizure of Xinbi’s Telegram communication channels. These channels had been utilized by vendors to promote money laundering services, fraudulent investment platforms, and recruitment campaigns for scam facilities.

According to the Justice Department, Tether, a major stablecoin issuer, provided assistance during the investigation. Blockchain analytics company Elliptic confirmed its role in supporting the U.S. Secret Service’s efforts to trace the platform’s activities.

Platform Attempted to Relocate Operations Ahead of Law Enforcement Action

In anticipation of increased law enforcement scrutiny, Xinbi initiated operational changes. Beginning around June 2025, the platform began transferring its merchant and money laundering networks to an encrypted messaging application developed by Singapore-registered SafeW Technology.

Simultaneously, Xinbi introduced XinbiPay, a cryptocurrency wallet application created by Cambodia-based Anwen Technology. Wednesday’s sanctions package included both SafeW and Anwen alongside the primary Xinbi platform.

According to Ari Redbord, Global Head of Policy at TRM Labs, following the closure of the Huione platform, Xinbi emerged as the dominant escrow and cash-out service provider for Southeast Asian fraud operations, processing more than $36 billion in aggregate transactions.

Treasury Secretary Scott Bessent emphasized that fraudulent operations in Southeast Asia extract billions of dollars annually from American victims. He pledged continued utilization of all available enforcement mechanisms to dismantle these criminal networks.

The United Kingdom had previously imposed sanctions on Xinbi in March, freezing its holdings and severing access to British financial and commercial systems.

United States Attorney Jeanine Pirro disclosed that the task force deployed personnel to Madagascar to combat comparable criminal operations in that region.

The sanctions freeze all United States-based property and interests associated with Xinbi and forbid American citizens and entities from conducting business with the designated organizations.