# DOJ Restrains $52M in Crypto Linked to Xinbi Scam Marketplace

**Published:** 2026-09-14T12:18:53.574Z  
**Topic:** Crypto Scam  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/a98dae54-8bd6-4f6a-858f-1d9642ac809a

The DOJ’s Scam Center Strike Force restrained $52M in crypto linked to the Xinbi Guarantee marketplace, which facilitated industrial-scale fraud schemes.

The U.S. Department of Justice’s Scam Center Strike Force restrained approximately $52 million in laundered cryptocurrency on September 9, 2026, as part of a coordinated crackdown on the Chinese-language marketplace Xinbi Guarantee [1]. The operation, which also involved the Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioning the platform as a significant transnational criminal organization, marks a major escalation in efforts to dismantle the financial infrastructure supporting global pig-butchering and investment fraud schemes [1, 3].

| At a glance | |
|---|---|
| Assets restrained | $52 million |
| Date of action | September 9, 2026 |
| Cumulative seizures | $938 million |
| Primary catalyst | DOJ and OFAC enforcement action |

## Dismantling the Xinbi network
Xinbi Guarantee operated primarily through Telegram, functioning as a centralized hub where vendors advertised services including the creation of fraudulent investment websites, money laundering, and the recruitment of forced labor for scam compounds [2, 3]. Prosecutors allege the platform held vendor payments in escrow, a mechanism that allowed investigators to trace victim funds to specific wallet addresses [3]. During the September 9 operation, authorities seized two wallets containing roughly $12 million and sought restraint orders against 47 additional wallets connected to the network [2, 3].

The enforcement action extends beyond the digital marketplace. Simultaneously, a two-week operation in Madagascar resulted in the dismantling of 13 Chinese-run scam compounds and the arrest of approximately 400 to 500 individuals [1, 3]. These compounds are accused of using trafficked labor to execute "pig butchering" scams, where perpetrators cultivate long-term relationships with victims to solicit investments into fake platforms [1]. The Treasury Department also sanctioned Singapore-based SafeW Technology and Cambodia-based Anwen Technology, alleging they provided the technical and financial architecture—including the XinbiPay wallet—that allowed the marketplace to scale [2].

## Market and regulatory impact
The $52 million restraint brings the Strike Force’s cumulative total of seized or frozen assets to $938 million, a figure reached in less than one year of operations [1, 3]. The DOJ credited stablecoin issuer Tether with assisting in the investigation, noting that the company cooperated to identify and lock down relevant wallets [1, 2]. This collaboration highlights a shift in law enforcement’s technical capacity to coordinate with private-sector firms to execute restraint orders in compressed timeframes [1].

Despite the scale of this intervention, the platform has proven resilient in the past. The UK government previously sanctioned Xinbi in March 2026, yet the group continued operations by migrating to new Telegram channels [3]. Estimates from Chainalysis suggest the platform processed nearly $20 billion in crypto between 2021 and 2025, while the Treasury Department reports that Xinbi has handled over $24 billion in crypto and fiat transactions since 2022 [2, 3].

## What to watch
*   **Network migration:** Monitor whether the Xinbi network attempts to establish new infrastructure on alternative encrypted messaging platforms following the seizure of its primary Telegram channels [2, 3].
*   **Follow-on restraints:** Track the status of the 47 additional wallets currently targeted for restraint, which represent the bulk of the identified laundering network [2].
*   **Reporting trends:** Watch for updated FBI data on investment fraud losses, which reached $8.65 billion in 2025, to see if the recent enforcement actions impact the volume of reported illicit activity [3].

The effectiveness of this strike force will be measured by its ability to disrupt the "industrial-scale" service providers that allow scam networks to function, rather than just individual operators. The open question remains whether these coordinated sanctions can permanently degrade the platform's utility or if the underlying criminal infrastructure will simply pivot to new, less-regulated service providers.

## Sources
1. Crypto Briefing — [Scam Center Strike Force restrains $52M in laundered crypto in one day](https://cryptobriefing.com/scam-center-strike-force-52m-crypto-madagascar/)
2. Cointelegraph — [US sanctions Xinbi scam marketplace, restrains $52M in crypto](https://cointelegraph.com/news/us-sanctions-xinbi-restrains-52m-crypto)
3. CryptoPotato — [DOJ Strike Force Seizes Scam Marketplace, Restrains $52M in Crypto](https://cryptopotato.com/doj-strike-force-seizes-scam-marketplace-restrains-52m-in-crypto/)
4. BeInCrypto — [DOJ Restrains $52 Million in Crypto Tied to Chinese Scam Marketplace Xinbi](https://beincrypto.com/xinbi-guarantee-telegram-seizure-crypto-freeze/)

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Cite as: TrendWatcher, "DOJ Restrains $52M in Crypto Linked to Xinbi Scam Marketplace", https://www.trendwatcher.in/article/a98dae54-8bd6-4f6a-858f-1d9642ac809a