US sanctions Xinbi scam marketplace, freezes $52 million in crypto
US authorities seize Xinbi assets
The U.S. Department of Justice (DOJ) and the Treasury’s Office of Foreign Assets Control (OFAC) announced coordinated actions against Xinbi, a crypto‑based scam marketplace. The DOJ seized two cryptocurrency wallets and the marketplace’s Telegram channels, while OFAC designated Xinbi and two of its technology providers as sanctioned entities. The actions freeze more than $52 million tied to the network.
Key facts
- Two wallets holding about $12 million were seized.
- Authorities seek restraints on 47 additional wallets linked to money‑laundering.
- Telegram channels used for advertising scams were ordered shut on Sept 7.
- OFAC sanctioned Xinbi, SafeW Technology (Singapore) and Anwen Technology (Cambodia).
- Xinbi processed over $24 billion in crypto and fiat since 2022, mainly in Southeast Asia.
Official actions
The DOJ’s Scam Center Strike Force carried out the seizures and obtained a court order from the U.S. District Court for the District of Columbia. The Treasury’s OFAC designation blocks Xinbi’s U.S. property and prohibits U.S. persons from dealing with the listed entities.
What is confirmed
- Seizure of two wallets with ~$12 million.
- Restraints requested for 47 other wallets.
- Telegram channels were seized under a court warrant dated Sept 7.
- OFAC designated Xinbi, SafeW Technology and Anwen Technology.
- Xinbi’s platform has been used by North Korean hackers and groups linked to the Prince Group.
Unverified claims
TRM Labs’ Ari Redbord said Xinbi became the primary “escrow and cash‑out layer” for Southeast Asian scam compounds after the fall of Huione, moving more than $36 billion. This statement reflects a claim and is not confirmed by official sources.
Why it matters
The enforcement targets the financial and communication infrastructure that enables large‑scale crypto scams. By freezing assets and sanctioning service providers, U.S. authorities aim to disrupt the flow of illicit funds and deter similar operations.
Next steps
Law‑enforcement continues to investigate the 47 additional wallets and other parts of Xinbi’s network. The sanctions remain in effect, and any U.S. person who transacts with the designated entities could face penalties.
