Tether freezes $45 million in USDT linked to Xinbi, prompting shift to USDD stablecoin

Tether freezes USDT wallets linked to Xinbi

On September 8‑9, 2026, Tether froze more than $45 million worth of its USDT stablecoin in at least 22 operational addresses that belong to the Xinbi Guarantee marketplace, a crypto platform used by scam operators in Southeast Asia.

The freeze affected wallets used for receiving deposits, routing funds and processing withdrawals, disrupting the platform’s payment network.

Key points

• More than $45 million USDT frozen across 22+ addresses.
• Addresses included deposit, intermediary, withdrawal hot wallets and third‑party operators linked to Xinbi.
• Xinbi responded by planning to accept only USDD, a decentralized stablecoin that cannot be frozen at the address level.

Bitrace analysis

Blockchain analytics firm Bitrace reported the freeze on September 9, noting that the action targeted not only Xinbi‑owned wallets but also those of related OTC operators that handled tens of millions of dollars.

After the initial freeze, Xinbi opened new addresses, but those were blocked again within 12 hours, leaving about $37,839 USDT stranded.

What is confirmed

• Tether froze over $45 million USDT linked to Xinbi.
• The freeze covered at least 22 operational wallets.
• Xinbi announced it will move to USDD for future transactions.

Unclear aspects

• How effectively USDD will protect Xinbi from future freezes is not yet known.
• Details of any further legal or regulatory actions against Xinbi remain unspecified.

Why it matters

The event shows how a stablecoin issuer can use address‑level blacklisting to disrupt a crypto‑based payment network. Xinbi’s switch to USDD, which is described as “tamper‑proof and cannot be frozen,” highlights a growing interest in decentralized stablecoins that lack a central issuer capable of freezing tokens.

What may happen next

According to the report, Xinbi plans to route deposits and withdrawals through USDD, while Tether may continue to target USDT wallets that support its network.

Sources

• CryptoSlate