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US sanctions Xinbi scam marketplace, restrains $52M in crypto
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- DeepHorus
US authorities have dismantled the Xinbi scam marketplace in a major coordinated operation, seizing over $52 million in cryptocurrency and restraining a vast network of wallets. The Department of Justice announced the seizure of two wallets holding approximately $12 million and obtained a court order to restrain 47 additional wallets believed to be part of Xinbi’s money laundering infrastructure. This action marks a significant escalation in targeting the financial and communication platforms that enable industrial-scale online fraud.
The operation was authorized by the US District Court for the District of Columbia, which granted a warrant on September 7 to seize Xinbi’s Telegram channels. Court documents reveal that vendors on these channels advertised services for money laundering, the creation of custom scam-investment websites, and recruitment for scam compounds across Southeast Asia. The DOJ credited the stablecoin issuer Tether with providing assistance during the investigation.
In a parallel move, the US Treasury’s Office of Foreign Assets Control (OFAC) officially designated Xinbi as a significant transnational criminal organization. The sanctions also targeted two technology providers: Singapore-based SafeW Technology and Cambodia-based Anwen Technology. Treasury reports indicate Xinbi migrated its operations to SafeW’s encrypted messaging app around June 2025, while Anwen allegedly developed the XinbiPay wallet application used by the marketplace.
The financial scale of Xinbi’s operations is staggering. Treasury data shows the platform has processed over $24 billion in cryptocurrency and fiat currency since 2022. According to Ari Redbord, Global Head of Policy at blockchain analytics firm TRM Labs, Xinbi became the primary escrow and cash-out service for Southeast Asian scam compounds after the shutdown of the Huione platform, moving an estimated $36 billion.
These new US sanctions follow similar measures imposed by the United Kingdom on March 26. The UK action froze Xinbi’s assets within its jurisdiction and barred the platform from the country’s financial, trade, and travel networks. The coordinated international response underscores a growing strategy to dismantle the entire ecosystem supporting online scam operations.
The sanctions fundamentally alter Xinbi’s operational landscape by blocking its access to the US financial system and prohibiting American persons from any transactions with the entity. This action aims to cripple the marketplace’s ability to function by severing its ties to global banking and technology services. Observers note this represents a shift from prosecuting individual scammers to targeting the enabling infrastructure itself.
Looking ahead, the joint US and UK actions signal a more aggressive, internationally coordinated approach to combating crypto-fueled fraud networks. Authorities are increasingly focused on the service providers—exchanges, messaging apps, and payment processors—that allow these criminal enterprises to operate at scale. The long-term effectiveness will depend on continued cross-border cooperation and the ability to adapt enforcement as these networks evolve.
