THE U.S. Department of Justice has disrupted Xinbi Guarantee, an illicit Telegram‑marketplace for scam services, seizing control channels and freezing funds as part of its Scam Center Strike Force operations. In coordinated action, DoJ also drained two Xinbi cryptocurrency wallets and deployed agents to Madagascar to disrupt 13 scam compounds run by Chinese organised crime networks.
DoJ said roughly $52 million of cryptocurrency linked to scam laundering was restrained in a single day, bringing the Scam Center Strike Force’s total restraints to about $938 million. Separately, the Treasury’s OFAC sanctioned Chinese‑language media connected to Xinbi for facilitating cyber scams, fraud and money laundering that target Americans.
Xinbi Guarantee functioned as an intermediary between scammers and vendors, hosting services such as creating fake investment sites, laundering victim funds, and recruiting trafficking victims for scam compounds in Southeast Asia. The DoJ noted that Xinbi held money in escrow for vendors until services were completed, effectively assuring scammers that vendors would perform.
Investigators identified Xinbi as having processed transactions largely in Tether (USDT) on the TRON chain, and, following the asset freeze, Xinbi reportedly switched to the USDD stablecoin. Elliptic described Xinbi as a major illicit marketplace with tens of billions in transactions to date, and the actions target the networks behind these “pig butchering” scams by freezing wallets and limiting centralised control over funds, undermining the platform’s core operation.