US Secret Service freezes $52.8 million in USDT from Xinbi marketplace

The US Secret Service froze $52.8 million in USDT across 52 wallets tied to Xinbi Guarantee, a Chinese-language Telegram-based marketplace, in a major operation targeting global crypto scams. The freeze took place on September 8 and relied on intelligence generated by blockchain analytics firm Elliptic. Treasury sanctions and DOJ enforcement On the same day, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated Xinbi as a significant transnational criminal organization. The Department of Justice’s Scam Center Strike Force, which has been pursuing cybercriminal operations since November 2025, reported that it has now seized $938 million in scam-linked cryptocurrency. Elliptic stated that its tracking of Xinbi and its wallet infrastructure over several years directly enabled both the freeze and the sanctions. The company added that its intelligence led US authorities to take coordinated action against Xinbi and its support network. Out of the 52 wallets targeted, two containing approximately $12 million were seized under a newly unsealed DOJ warrant. The remaining wallets, all holding USDT, remain frozen pending further investigation. How Xinbi operates Xinbi Guarantee is not a conventional marketplace, but rather an escrow-based platform where vendors post crypto deposits to ensure mutual trust. These deposits act as collateral, and buyers who feel defrauded can be reimbursed from the escrowed funds, making such platforms attractive to cybercriminals dealing in stolen personal data or money-laundering services. Since 2022, Xinbi and its merchants processed at least $24 billion in transactions, according to Elliptic. This makes it the second-largest illicit online market tracked so far, trailing only Huione Guarantee, which handled $31 billion before being shut down by Telegram in May 2025 following years of investigation. Elliptic analysts observed that Xinbi rapidly absorbed illicit transaction volumes after Huione’s closure, capitalizing on the proven demand for such services within criminal networks. Xinbi’s ties to global scams are extensive, including operations built on “pig butchering” schemes that lure victims into fraudulent online relationships and convince them to invest in fake apps showing phony profits. Global reach and new countermeasures OFAC sanctioned two more firms alongside Xinbi: SafeW Technology, based in Singapore, and Cambodia’s Anwen Technology. Both companies allegedly supported Xinbi’s operations. The UK government had already placed Xinbi under sanctions in March. In response to the asset freeze, Xinbi issued a statement labeling the government’s action “arbitrary” and promised to reimburse affected customers. The platform quickly began shifting funds: roughly $2.8 million in USDT was swapped for USDD, a stablecoin issued by Tron founder Justin Sun. Unlike USDT, USDD lacks a mechanism for externally freezing wallets. However, some of USDD’s reserves remain backed by USDT, exposing Xinbi to ongoing regulatory risks.