The DOJ crypto seizure against Xinbi Guarantee restrained more than $52 million in cryptocurrency. US authorities also targeted wallets and online channels linked to the Chinese-language marketplace. The action involved Treasury sanctions and assistance from Tether.
The Justice Department’s Scam Center Strike Force announced the operation on Sept. 9. Authorities seized two crypto wallets containing about $12 million. They also sought restraints on 47 additional wallets tied to suspected money laundering.
The operation lifted the Strike Force’s total restrained assets to about $938 million. Tether later said the DOJ had credited its “proactive assistance” in the Xinbi investigation.
How Did the DOJ Crypto Seizure Target Xinbi Guarantee?
DOJ crypto seizure centered on Xinbi’s payment and communication network. DOJ claimed that the platform was operating through Telegram and allowed scam center operators to communicate with vendors providing criminal services.
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These services include money laundering, fraudulent investment websites, and technical assistance. Some vendors have also been involved in recruitment activities related to human trafficking and scam compounds in Southeast Asia.
Investigators have found out that the money of US victims was going to some vendors working on the platform. The government says these vendors promoted their money laundering services and shared cryptocurrency addresses for payments.
The DOJ crypto seizure also extended to Xinbi’s online infrastructure. A federal court ordered the seizure of Telegram channels used to host the marketplace on September 7. The action widened the investigation beyond cryptocurrency wallets and disrupted channels authorities said supported Xinbi’s operations.
Two days after, Treasury increased the pressure on the company. The Office of Foreign Assets Control blacklisted Xinbi as a transnational criminal organization. They also blacklisted SafeW Technology and Anwen Technology for their involvement in the operations of Xinbi.
Treasury claims that Xinbi has been processing more than $24 billion worth of digital assets and fiat currency since 2022.
Why Did Tether Matter in the DOJ crypto seizure?
Tether became a method for halting suspicious money through its involvement in the case. Tether is an issuer of USDT; therefore, it has measures in place that help freeze USDT tokens upon request.
According to Tether CEO Paolo Ardoino, technology behind stablecoins helps trace and disrupt illegal activities. Ardoino believes that criminal organizations should not think that cryptocurrency takes money out of the investigators’ reach.
The company claimed it had cooperated with more than 340 law enforcement agencies from 67 different countries. It was reported that the cooperation helped freeze over $5 billion in assets related to suspected illegal actions.
It should be noted that US law enforcement did not mention whether all restrained assets were in the form of USDT. The US Department of Justice called the restrained cryptocurrency without mentioning individual coins.
Why Has Xinbi Remained a Major Crypto Scam Network?
Before this current crackdown, Xinbi had been under close examination before. Studies have found a connection between the marketplace and money laundering, fraudulent investment schemes, and other services utilized by the scams.
Telegram had suspended certain channels associated with Xinbi and Huione Guarantee in May 2025. The suspensions were based on studies related to their involvement in cryptocurrency scams and payment systems.
The suspension did not mean that Xinbi would shut down its operations. Other channels emerged, and other guarantee marketplaces took in their share of the business lost.
How Is the US Targeting Wider Crypto Scam Networks?
Xinbi is just one example of the broader US strategy targeting the scam infrastructure. There have been multiple actions from the DOJ, the FBI, the Secret Service, and the Treasury against wallets, sites, and other means of funding by overseas fraudsters.
The United States has taken action against the Huione Group. FinCEN stated that the Cambodia-based company laundered at least $4 billion of criminal proceeds between August 2021 and January 2025.
That amount included money from cybercrime, cryptocurrency investment scams, and others. Regulators also mentioned inadequate controls on money laundering and customer verification in the Huione organization.
Therefore, this most recent action from DOJ on cryptocurrencies targets not only individuals behind the schemes but also the infrastructure of the networks.
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