U.S. authorities have disrupted Xinbi Guarantee, restraining more than $52 million in cryptocurrency linked to the Chinese-language marketplace while targeting the infrastructure and companies supporting its operations. The coordinated action combined asset restraints, Telegram channel seizures and Treasury sanctions against a network accused of facilitating cyber scams and money laundering.
According to an official Justice Department announcement, a federal court authorized the seizure of Xinbi’s Telegram channels on September 7. The Scam Center Strike Force subsequently seized two payment wallets containing approximately $12 million and sought restraint of another 47 wallets linked to Xinbi and its vendors. The combined measures restricted more than $52 million in cryptocurrency in a single day.
Xinbi Network Faces Wallet Seizures and Sanctions
Prosecutors allege Xinbi operated an illicit Telegram-based marketplace where vendors offered money laundering, fraudulent investment websites and other services to scam-center operators. U.S. victim funds were traced to vendors advertising laundering services and publishing cryptocurrency payment addresses through the platform, according to the seizure warrant described by the DOJ.
On September 9, the Treasury Department’s Office of Foreign Assets Control designated Xinbi as a significant transnational criminal organization. OFAC also sanctioned SafeW Technology and Anwen Technology for materially supporting Xinbi’s operations, including encrypted communications and cryptocurrency payment infrastructure.
Treasury said Xinbi began moving merchants and laundering activity to SafeW around June 2025, while Anwen developed XinbiPay, also known as NewPay. The sanctions extend enforcement beyond the marketplace itself to technology providers accused of enabling its core financial and communications infrastructure.
The Treasury Department’s official action estimates that Xinbi has processed more than $24 billion in digital assets and fiat currency since emerging around 2022. That scale illustrates why authorities are increasingly targeting the infrastructure surrounding scam networks rather than pursuing individual fraudulent transfers alone.
Crypto Compliance Exposure Expands
OFAC’s designation means property and interests belonging to Xinbi, SafeW Technology and Anwen that are held in the United States or controlled by U.S. persons must be blocked and reported. Crypto businesses interacting with designated wallets or entities now face direct sanctions-screening obligations in addition to conventional fraud and anti-money-laundering controls.
The DOJ credited Tether with assisting the investigation, illustrating how centralized stablecoin issuers can participate in asset-restraint efforts when authorities identify illicit flows. The operation shows that blockchain tracing, issuer cooperation and legal process can be combined to interrupt laundering networks across wallets and online infrastructure.
Following the Xinbi action, the Scam Center Strike Force said it had restrained approximately $938 million since its creation in 2025. The enforcement strategy increasingly targets marketplaces, wallets and technical facilitators as interconnected components of transnational scam operations, raising the compliance stakes for exchanges, payment providers and other services exposed to those networks.
