DOJ Seizes $52M in Crypto from Xinbi Scam Network
The Justice Department restrained $52 million in cryptocurrency after seizing the Xinbi marketplace. This action adds to a total of $938 million recovered by the Strike Force since its launch.
The U.S. Department of Justice restrained $52 million in cryptocurrency assets on Wednesday. The funds were tied to the Xinbi Guarantee marketplace, a Chinese-language platform operating via Telegram. U.S. Attorney Jeanine Pirro announced the seizure under the authority of the Scam Center Strike Force. This operation brings the total amount restrained by the unit to roughly $938 million since its founding in November 2025.
The seizure targets a network that facilitated fraud services for scam operators. Vendors on the platform offered custom investment websites and money laundering services. The Treasury Department’s Office of Foreign Asset Control also designated Xinbi as a transnational criminal organization. This designation freezes any property held by the entity within the United States.
Platform Operations and Seizure Details
Xinbi functioned as an escrow service for criminal transactions. Vendors posted wallet addresses to collect payment only after completing jobs. Investigators seized two primary crypto wallets worth approximately $12 million. Prosecutors also sought restraint on 47 additional wallets associated with the network. A federal court in Washington authorized the seizure of the Telegram channels on September 7.
According to GN markets/crypto (en-US), the platform processed nearly $20 billion in cryptocurrency between 2021 and 2025. Chainalysis estimates this volume included sales of stolen personal data and satellite equipment. The British government sanctioned the entity in March of this year. The group continued operations by opening new channels despite the earlier sanctions.
Broader Crackdown on Transnational Fraud
The Strike Force also supported authorities in Madagascar during a two-week deployment. The team processed more than 3,200 devices and interviewed approximately 400 arrested individuals. U.S. Attorney Michael Heyman of Alaska stated that the organization ignores borders. The Justice Department aims to dismantle these networks regardless of their geographic location.
Reported crypto investment fraud losses reached $8.65 billion in 2025. This figure represents an 89 percent increase from $4.57 billion in 2023. The FBI notes that these figures are likely under-represented. Most fraud victims do not report their losses to law enforcement agencies.
