U.S. Treasury Dismantles Xinbi Guarantee: Inside the $24 Billion Crypto Fraud Empire

Key Takeaways

• Federal authorities have sanctioned Xinbi Guarantee, a Chinese-language digital marketplace facilitating cryptocurrency-based criminal activities
• The platform handled more than $24 billion in digital assets and traditional currency since its 2022 launch, with operations concentrated in Southeast Asia
• Federal prosecutors confiscated two digital wallets holding $12 million and obtained court orders for 47 additional wallets, bringing total seized assets beyond $52 million
• The operation had connections to North Korean cyber criminals, the Prince Group organization, and money laundering rings coordinating through Telegram
• SafeW Technology of Singapore and Anwen Technology of Cambodia received sanctions for providing technical infrastructure to Xinbi

The United States Department of the Treasury has imposed sanctions on Xinbi Guarantee, a digital marketplace implicated in orchestrating extensive cryptocurrency-related criminal schemes. Federal agencies announced the coordinated enforcement action on Wednesday.

Operating as a Chinese-language service since approximately 2022, Xinbi has facilitated transactions exceeding $24 billion, with a substantial portion conducted in digital currencies, according to the Treasury’s Office of Foreign Assets Control.

The operation allegedly enabled fraudulent call centers throughout Southeast Asia to acquire equipment and wash illicit proceeds. Federal investigators also claim it provided services to North Korean cyber operatives and organizations connected to the previously sanctioned Prince Group.

Federal Prosecutors Confiscate Digital Assets and Communication Channels

The Justice Department’s Scam Center Strike Force confiscated two cryptocurrency wallets that Xinbi utilized for collecting vendor fees. These digital wallets contained approximately $12 million in cryptocurrency.

Federal investigators additionally obtained judicial authorization to freeze 47 additional wallets associated with money laundering throughout Xinbi’s broader operational network. Combined, authorities restrained or confiscated over $52 million in digital assets.

A federal district judge granted authorization on September 7 to seize Xinbi’s Telegram communication channels. Criminal vendors exploited these channels to promote money laundering services, fraudulent investment platforms, and recruitment for forced labor scam facilities.

According to the Justice Department, stablecoin provider Tether contributed to the investigation. Blockchain analytics company Elliptic reported it assisted the U.S. Secret Service in tracing the platform’s activities.

Platform Attempted to Relocate Before Federal Intervention

Anticipating law enforcement pressure, Xinbi initiated operational changes. Beginning around June 2025, the organization migrated its merchant and money laundering networks to a secure messaging application created by Singapore-registered SafeW Technology.

Simultaneously, Xinbi introduced XinbiPay, a cryptocurrency wallet developed by Cambodia-registered Anwen Technology. Both technology companies received sanctions alongside Xinbi in Wednesday’s announcement.

According to TRM Labs Global Head of Policy Ari Redbord, following the closure of the Huione platform, Xinbi emerged as the primary escrow and liquidation service for Southeast Asian fraud operations, processing more than $36 billion overall.

Treasury Secretary Scott Bessent emphasized that Southeast Asian scam facilities defraud Americans of billions annually. He committed to continuing the department’s efforts to dismantle these criminal enterprises.

British authorities had previously sanctioned Xinbi in March, freezing its holdings and prohibiting it from accessing UK financial and commercial systems.

U.S. Attorney Jeanine Pirro noted that the task force deployed personnel to Madagascar to combat similar fraudulent operations in that region.

The sanctions freeze all U.S.-based property and interests connected to Xinbi and forbid American individuals and entities from conducting transactions with the designated organizations.

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