The U.S. Department of Justice and Treasury have launched coordinated actions against the illicit Telegram-based marketplace Xinbi Guarantee, seizing assets and disrupting global scam operations linked to organized crime.

Key Points

• The U.S. government seized two cryptocurrency wallets and Telegram channels associated with Xinbi Guarantee, a marketplace facilitating "pig butchering" scams and money laundering.
• Authorities froze approximately $52.8 million in Tether (USDT) stablecoins held in 52 wallets linked to the network.
• The Scam Center Strike Force disrupted 13 scam compounds in Madagascar, resulting in the seizure of over 3,200 electronic devices and the arrest of nearly 400 individuals.
• Blockchain analytics firm Elliptic estimates Xinbi has processed $30 billion in transactions since 2022, making it one of the largest illicit marketplaces in history.
• Following the asset freeze, Xinbi attempted to pivot from USDT to the USDD stablecoin to evade future wallet-freezing capabilities.

Why it Matters

These actions represent a significant escalation in the U.S. government's effort to dismantle the infrastructure supporting global cyber-fraud and human trafficking syndicates. By targeting the financial intermediaries that provide trust and payment services to criminals, authorities aim to destabilize the entire ecosystem of overseas scam centers.