The U.S. Department of Justice (DoJ) announced on September 9, 2026, a series of coordinated actions targeting the illicit online marketplace known as Xinbi Guarantee. This platform was reportedly involved in various scam services, prompting the seizure of Telegram channels, the confiscation of two cryptocurrency wallets, and the deployment of the Scam Center Strike Force to Madagascar to disrupt 13 scam compounds operated by Chinese organized crime syndicates.
In a single day, approximately $52 million in cryptocurrency linked to scam money laundering was restrained, contributing to a total of about $938 million restrained by the Scam Center Strike Force to date. The Treasury Department’s Office of Foreign Assets Control (OFAC) has also sanctioned Chinese-language media for their roles in facilitating cyber scams and other criminal activities targeting Americans.
Details of the Xinbi Guarantee Operations
Xinbi Guarantee emerged as a prominent marketplace following the shutdown of similar platforms, HuiOne Guarantee and Tudou Guarantee, last year. According to blockchain analytics firm Elliptic, which collaborated with the U.S. Secret Service, Xinbi is the second-largest illicit marketplace, with an estimated $30 billion in transactions since its inception around 2022. The platform acts as an intermediary between vendors and scam center operators, facilitating various services, including the creation of fraudulent investment websites and money laundering for scammers.
Impact on Cryptocurrency and Regulatory Actions
The DoJ’s actions included the seizure of two cryptocurrency wallets used by Xinbi, which contained around $12 million in funds. In total, $52.8 million worth of cryptocurrency has been frozen across 52 wallets associated with Xinbi and its network. Following these developments, Xinbi has reportedly shifted to using USDD (Decentralized USD), another stablecoin, after the freeze on its USDT assets.
Dr. Tom Robinson from Elliptic noted that while USDD lacks a central issuer and freezing capability, it remains exposed to risks, as it is partially collateralized with USDT. The U.K. had previously sanctioned Xinbi for providing cryptocurrency-based services to scam centers, marking a growing international effort to combat such illicit activities.
Future Directions for Law Enforcement
The Justice Department has indicated that the Scam Center Strike Force will expand its operations globally, with recent actions resulting in the dismantling of 13 scam centers in Madagascar. Investigations have been initiated based on interviews with nearly 400 arrestees, including approximately 30 Chinese leaders of the scam compounds who have been repatriated to China. The crackdown on Xinbi Guarantee represents a significant step in addressing the broader issue of cybercrime and the challenges posed by organized crime networks.
This article was produced by NeonPulse.today using human and AI-assisted editorial processes, based on publicly available information. Content may be edited for clarity and style.
