# US Seizes Xinbi Guarantee Assets and Shuts Down Scam Marketplace

**Published:** 2026-09-10T08:52:09.926Z  
**Topic:** Crypto Scam  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/313e1254-26ae-4873-a934-b513bdb6e26d

The US government has frozen $52.8 million in crypto and shut down Xinbi Guarantee, a major illicit marketplace linked to global scam centers.

The U.S. Department of Justice and the Secret Service have dismantled Xinbi Guarantee, an illicit Telegram-based marketplace, by freezing $52.8 million in Tether (USDT) and forcing the platform offline. The action marks a significant escalation in the government's effort to disrupt criminal networks that facilitate "pig butchering" romance scams and money laundering for organized crime syndicates worldwide [1, 2].

| At a glance | |
|---|---|
| Assets Frozen | $52.8 million |
| Total Marketplace Volume | $30 billion |
| Primary Asset Impacted | Tether (USDT) |
| Catalyst | Coordinated US law enforcement action |

## Dismantling the Guarantee Ecosystem
The crackdown involved the seizure of Telegram channels used by Xinbi to host its marketplace and the confiscation of 52 cryptocurrency wallets holding $52.8 million in USDT [1]. Blockchain analytics firm Elliptic identified Xinbi as the second-largest illicit marketplace of all time, noting that the platform had processed approximately $30 billion in transactions since its inception in 2022 [1]. The marketplace functioned as a "one-stop shop" for scammers, providing services such as custom investment website creation, money laundering, and the recruitment of trafficking victims for scam compounds in Southeast Asia [1, 2].

The operation, which included the deployment of the Scam Center Strike Force to Madagascar to disrupt 13 scam compounds, brings the total amount of cryptocurrency restrained by the task force to approximately $938 million [1]. While Xinbi previously rose to prominence following the closure of similar marketplaces like HuiOne Guarantee and Tudou Guarantee, analysts suggest this latest intervention represents a "severe setback" that undermines the trust necessary for these criminal networks to operate [1, 2].

## Shift to Alternative Stablecoins
Following the asset freeze, Xinbi attempted to pivot its operations by switching from Tether’s USDT to USDD, a stablecoin pegged to the U.S. Dollar [1]. The marketplace reportedly exchanged approximately $2.8 million of its remaining USDT assets into USDD using a decentralized exchange [1]. Unlike USDT, which is issued by Tether and includes a built-in feature allowing the company to freeze wallets, USDD lacks a central issuer or native freezing capability [1, 2].

However, the efficacy of this shift remains uncertain. Experts note that USDD’s claims of decentralization are contested, as the asset is partially collateralized with USDT, leaving it exposed to potential freezing risks [1]. Furthermore, Telegram has now deleted the central channels associated with the marketplace and banned its associated usernames, leaving the future of the platform in doubt [2].

## What to watch
*   **Marketplace Re-emergence:** Monitor whether Xinbi attempts to resurface under a new name, similar to the transition from HuiOne to Tudou, and whether it can regain the trust of its merchant base [1].
*   **Stablecoin Liquidity:** Observe if the shift to USDD results in increased volatility or liquidity issues for the remaining assets, given the underlying reliance on USDT collateral [1].
*   **Global Enforcement:** Watch for further actions by the Scam Center Strike Force as it expands its scope to target additional scam compounds globally [1].

The closure of Xinbi Guarantee creates a significant vacuum in the "Guarantee" ecosystem, forcing criminal operators to navigate a landscape where their previously reliable payment channels are now subject to immediate intervention by law enforcement. Whether this disruption leads to the permanent collapse of these networks or merely shifts them to more opaque, decentralized alternatives remains the primary question for investigators.

## Sources
1. The Hacker News — [U.S. Disrupts Xinbi Guarantee Scam Marketplace, Freezes $52.8 Million in Crypto](https://thehackernews.com/2026/09/us-disrupts-xinbi-guarantee-scam.html)
2. Elliptic — [Elliptic helps the U.S. Secret Service freeze $52.8 million Xinbi scam...](https://www.elliptic.co/insights/elliptic-helps-us-secret-service-freeze-xinbi-scam-marketplace-assets/)

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Cite as: TrendWatcher, "US Seizes Xinbi Guarantee Assets and Shuts Down Scam Marketplace", https://www.trendwatcher.in/article/313e1254-26ae-4873-a934-b513bdb6e26d