Key Takeaways
- • The DOJ's Scam Center Strike Force restrained $52 million in cryptocurrency from Xinbi Guarantee, a Chinese-language fraud marketplace operating on Telegram, in a single coordinated operation on September 7, 2026.
- • Investigators seized two crypto wallets holding approximately $12 million in vendor payments and sought restraint of 47 additional wallets connected to the network, demonstrating the scale of infrastructure supporting transnational scam operations.
- • Xinbi functioned as a B2B marketplace where vendors advertised services including custom fraud website development, money laundering ("washing"), and human trafficking recruitment for scam compound staffing.
- • The Treasury Department's Office of Foreign Asset Control (OFAC) designated Xinbi and two supporting entities as transnational criminal organizations, freezing all U.S.-held assets, amplifying enforcement beyond cryptocurrency seizures.
- • This single operation brings the Strike Force's cumulative asset restraint total to approximately $938 million since its inception, with simultaneous enforcement actions extending to Madagascar, where authorities dismantled 13 Chinese-run scam compounds.
Summary
The Justice Department's Scam Center Strike Force, in coordination with the Treasury Department, executed a significant enforcement action against Xinbi Guarantee on September 7, 2026, restraining $52 million in cryptocurrency and seizing critical infrastructure supporting a transnational fraud operation. U.S. Attorney Jeanine Pirro announced the seizure of Telegram channels hosting the marketplace and the direct restraint of cryptocurrency wallets, demonstrating the Strike Force's ability to disrupt organized cybercriminal networks operating across jurisdictions.
Xinbi operated as a specialized marketplace for fraud-as-a-service operations, functioning almost exclusively through encrypted Telegram channels in Chinese. The platform's business model centered on connecting scam operators with specialized vendors who provided critical services: development of fraudulent investment websites, money laundering infrastructure, and recruitment of victims for staffing scam compounds. Critically, Xinbi held vendor payments in escrow until service completion, creating a traceable financial trail that allowed federal prosecutors to map specific victim funds to individual vendors and their cryptocurrency wallets.
The enforcement action targeted 49 cryptocurrency wallets in total: investigators directly seized two wallets containing approximately $12 million in accumulated vendor payments, while securing court restraint orders against 47 additional wallets tied to the broader Xinbi vendor network. A federal court in Washington authorized the seizure of Telegram channels on September 7, with the warrant unsealed publicly on Wednesday following the operation's completion. The Treasury's Office of Foreign Asset Control (OFAC) designated Xinbi as a transnational criminal organization on the same day, alongside two additional entities accused of supporting its operations, effectuating a comprehensive freeze on any assets held within U.S. jurisdiction.
The operation reflects an expanding enforcement footprint. Concurrent with the Xinbi takedown, Strike Force teams collaborated with Madagascan authorities to dismantle 13 Chinese-operated scam compounds, extending enforcement beyond the Southeast Asian theater where these operations historically concentrated. Since its founding, the Scam Center Strike Force has restrained approximately $938 million in illicit cryptocurrency and assets, positioning this $52 million single-day seizure as a substantial tactical victory against infrastructure supporting international fraud and human trafficking networks. Tether, the major stablecoin issuer, received DOJ credit for providing proactive assistance in facilitating the restraint action, highlighting cooperation between law enforcement and cryptocurrency platforms in combating financial crime.
Xinbi operated as a specialized marketplace for fraud-as-a-service operations, functioning almost exclusively through encrypted Telegram channels in Chinese. The platform's business model centered on connecting scam operators with specialized vendors who provided critical services: development of fraudulent investment websites, money laundering infrastructure, and recruitment of victims for staffing scam compounds. Critically, Xinbi held vendor payments in escrow until service completion, creating a traceable financial trail that allowed federal prosecutors to map specific victim funds to individual vendors and their cryptocurrency wallets.
The enforcement action targeted 49 cryptocurrency wallets in total: investigators directly seized two wallets containing approximately $12 million in accumulated vendor payments, while securing court restraint orders against 47 additional wallets tied to the broader Xinbi vendor network. A federal court in Washington authorized the seizure of Telegram channels on September 7, with the warrant unsealed publicly on Wednesday following the operation's completion. The Treasury's Office of Foreign Asset Control (OFAC) designated Xinbi as a transnational criminal organization on the same day, alongside two additional entities accused of supporting its operations, effectuating a comprehensive freeze on any assets held within U.S. jurisdiction.
The operation reflects an expanding enforcement footprint. Concurrent with the Xinbi takedown, Strike Force teams collaborated with Madagascan authorities to dismantle 13 Chinese-operated scam compounds, extending enforcement beyond the Southeast Asian theater where these operations historically concentrated. Since its founding, the Scam Center Strike Force has restrained approximately $938 million in illicit cryptocurrency and assets, positioning this $52 million single-day seizure as a substantial tactical victory against infrastructure supporting international fraud and human trafficking networks. Tether, the major stablecoin issuer, received DOJ credit for providing proactive assistance in facilitating the restraint action, highlighting cooperation between law enforcement and cryptocurrency platforms in combating financial crime.
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