Secret Service Freezes $52.8M in Crypto Tied to Xinbi

The U.S. Secret Service has frozen $52.8 million in cryptocurrency tied to Xinbi, a sprawling Telegram marketplace that blockchain investigators say greased the wheels of online scams. It is one of the sharpest strikes yet against the shadow economy powering pig-butchering fraud, and it hit the criminals where it hurts: their money. The freeze targeted USDT, the dollar-pegged stablecoin, and struck 52 separate wallets belonging to Xinbi Guarantee and its merchants, according to blockchain analytics firm Elliptic, which says its intelligence enabled the operation. For related coverage, see 10 Biggest Crypto Fraud Cases in 2026. Elliptic reports the freezes began at 08:00 UTC on September 8, 2026. The frozen asset was Tether’s USDT, a stablecoin that trades at roughly $1 and whose issuer can freeze balances at named addresses. For related coverage, see Senate to Vote on Clarity Act for U.S. Crypto Regulation. USDT frozen, according to Elliptic $52.8 million Elliptic, which participated in the operation, reports that the U.S. Secret Service froze $52.8 million in USDT linked to Xinbi Guarantee and its merchants. A freeze does not establish seizure, forfeiture or repayment to victims. A freeze is not a seizure. The funds are locked, not forfeited, and none of it has been described as recovered or returned to victims. Any reader treating this as a closed case is getting ahead of the facts. For related coverage, see CFTC Crypto Rules: Chair Says Agency Acts if Bill Stalls. The Reported Link to Telegram Marketplace Xinbi Xinbi Guarantee is a Telegram-based “guarantee” marketplace, a model where merchants post deposits as collateral and buyers trust the platform to hold both sides accountable. Elliptic says Xinbi’s merchants offered personal data, communications infrastructure and money laundering services to scammers. For related coverage, see Coldcard Wallet Hack Tied to Firmware Flaw, $114M Lost. The crypto was tied to Xinbi and its merchants, not owned outright by a single operator. That distinction matters: the 52 wallets span the marketplace and the vendors trading on it. For related coverage, see Bessent Says Crypto Clarity Act Is at the 1-Yard Line. Wallets frozen, according to Elliptic 52 Elliptic reports that freezes affected 52 wallets belonging to Xinbi Guarantee and its merchants, beginning September 8, 2026, at 08:00 UTC. OFAC’s separate sanctions designation followed on September 9. The scale is staggering. Elliptic estimates Xinbi Guarantee and its merchants processed at least $24 billion in transactions since launching in 2022. That figure is throughput, not proven victim losses, and the two should not be confused. A closely linked payments service, Xinbi Pay, also known as XPay, handled a further $6 billion, which Elliptic counts separately from the marketplace. For scale, Xinbi ranks among the biggest crypto fraud cases surfacing in 2026.