U.S. authorities have restrained approximately $52 million in scam-related cryptocurrency and seized Telegram channels operated by Xinbi Guarantee, a Chinese-language marketplace that served scam-center operators and vendors. The coordinated action involved Treasury sanctions, Department of Justice wallet seizures, and raids in Madagascar.
Blockchain analytics firm Elliptic revealed that years of tracking Xinbi wallets enabled the U.S. Secret Service to act against the marketplace, which provides fraud websites, money laundering services, and recruitment for scam compounds in Southeast Asia. Elliptic first exposed Xinbi in May 2025 and now estimates at least $24 billion in transactions since 2022, ranking behind Huione Guarantee’s $31 billion.
Xinbi Pay, a related payments platform, processed an additional $6 billion, mostly using Tether’s USDT on the TRON blockchain. The United Kingdom sanctioned Xinbi in March 2026, and prosecutors seized two payment wallets holding about $12 million, targeting 47 more wallets. The Justice Department credited Tether for assisting the operation.
In response to the freezes, Xinbi exchanged roughly $2.8 million in remaining USDT for Decentralized USD (USDD), which lacks an issuer freeze function. However, Elliptic noted that USDD’s backing includes USDT, which issuers can freeze. The Telegram channel seizures disrupted a key communication and commerce route for merchants.
Separately, Strike Force agents spent two weeks in Madagascar assisting local authorities against 13 Chinese-run scam compounds, leading to nearly 400 arrests and the seizure of over 3,200 electronic devices. About 30 detainees were identified as Chinese leaders and repatriated. The Strike Force has restrained about $938 million in cryptocurrency since its launch in November 2025, with the Xinbi action adding approximately $52 million in one day.
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