# US Seizes Xinbi Crypto Marketplace and Restrains $52 Million

**Published:** 2026-09-12T11:59:13.703Z  
**Topic:** Crypto Scam  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/91a062ff-97fc-4653-a9cc-51ba4ccb8325

US authorities seized Telegram channels and $52 million in crypto linked to Xinbi Guarantee, a $24 billion illicit marketplace for money laundering services.

The U.S. Department of Justice and Treasury Department have seized Telegram infrastructure and restrained over $52 million in cryptocurrency tied to Xinbi Guarantee, a Chinese-language marketplace accused of facilitating money laundering and scam operations for organized crime [1]. The crackdown targets a platform that processed an estimated $24 billion in digital and fiat assets since 2022, marking a significant escalation in efforts to dismantle the financial infrastructure supporting global cyber-fraud [2].

| At a glance | |
|---|---|
| Restrained Funds | $52 Million |
| Total Platform Volume | $24 Billion |
| Seizure Date | Sept. 7 |
| Primary Catalyst | DOJ/Treasury Enforcement |

## Dismantling the Illicit Escrow Network
The coordinated enforcement action, authorized by a federal judge on Sept. 7, targeted the core operational tools used by Xinbi to facilitate scams [1]. The platform functioned as an escrow service, holding payments for vendors who provided custom scam websites, money-laundering services, and recruitment for forced-labor compounds in Southeast Asia [1]. By seizing Telegram channels and two primary cryptocurrency wallets holding approximately $12 million, authorities aimed to disrupt the marketplace's ability to coordinate transactions between scammers and service providers [1].

The Treasury Department’s Office of Foreign Assets Control (OFAC) further designated Xinbi as a significant transnational criminal organization, simultaneously sanctioning Singapore-based SafeW Technology and Cambodia-based Anwen Technology for providing material support [1]. According to the DOJ, Xinbi had begun migrating its merchant and laundering operations to the encrypted SafeW application around June 2025 as law enforcement scrutiny intensified [1]. The platform also introduced a proprietary payment application, XinbiPay, in an attempt to bypass traditional financial oversight [1].

## Market Impact and Competitive Shifts
The enforcement action has triggered a wave of defensive activity across the underground crypto economy. On-chain data from Bitrace shows that daily USDT withdrawals from a Xinbi-linked sub-platform jumped from a range of $389,000–$564,000 in early September to $1.81 million by Sept. 9 as merchants scrambled to move funds before further freezes [2]. This panic has spread to rival platforms, with the competitor Fulilai Guarantee removing money-laundering merchants from its public groups and recording approximately $9.3 million in outflows following the sanctions [2].

The crackdown highlights the evolving nature of crypto-enabled crime, where platforms like Xinbi serve as "Black U" hubs—connecting stolen assets from hacks with stablecoins derived from romance and investment scams [2]. By targeting the service providers and communication channels rather than just individual wallets, authorities are attempting to break the link between stolen tokens and the cash-out networks that convert them into fiat [2].

## What to watch
*   **Platform Migration:** Monitor whether Xinbi’s merchant network successfully migrates to alternative encrypted messaging apps or if the loss of centralized payment infrastructure permanently degrades its transaction volume [2].
*   **Rival Platform Stability:** Watch for further "purges" on competing marketplaces like Fulilai, as operators attempt to avoid becoming the next target of OFAC sanctions [2].
*   **Stablecoin Usage:** Observe if the shift away from USDT—driven by issuer-level freezes—leads to increased adoption of alternative assets like USDD within illicit marketplaces [2].

The open question remains whether the disruption of Xinbi’s infrastructure will force a lasting contraction in the underground economy or simply accelerate the fragmentation of these services into smaller, more difficult-to-track networks.

## Sources
1. WCHS — [DOJ takes down Chinese scam network targeting 'every American with a retirement account'](https://wchstv.com/news/nation-world/doj-justice-department-scam-center-strike-force-attorney-jeanine-pirro-takes-down-chinese-scam-network-xinbi-guarantee-telegram-targeting-every-american-with-a-retirement-account-treasury-sanctions-money-laundering-cryptocurrency)
2. CryptoSlate — [US hit on $24 billion crypto black market sends rival money launderers running for exits](https://cryptoslate.com/us-hit-on-24-billion-crypto-black-market-sends-rival-money-launderers-running-for-exits/)
3. UseTheBitcoin — [Xinbi Sanctioned by Treasury as DOJ Restrains $52M](https://usethebitcoin.com/news/treasury-sanctions-xinbi-doj-restrains-52-million/)

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Cite as: TrendWatcher, "US Seizes Xinbi Crypto Marketplace and Restrains $52 Million", https://www.trendwatcher.in/article/91a062ff-97fc-4653-a9cc-51ba4ccb8325