US freezes $52 million in Xinbi-linked crypto assets
US authorities have frozen over $52 million in digital assets linked to the Xinbi marketplace. The move marks a significant expansion of enforcement against the platform's infrastructure.
The US Department of Justice restrained more than $52 million in cryptocurrency connected to Xinbi Guarantee. This action targets the financial infrastructure of the alleged scam marketplace. The seizure includes $12 million found in two wallets used for vendor payments. Investigators are pursuing 47 additional wallets in the network.
The US District Court for the District of Columbia authorized the seizure on September 7. The warrant covers Telegram channels used to advertise illicit services. Vendors on these channels offered money laundering and recruitment for scam compounds. The operation expands enforcement beyond individual operators to the supporting marketplace.
Treasury designates Xinbi as criminal organization
The Treasury Department’s Office of Foreign Assets Control designated Xinbi as a significant transnational criminal organization. It also sanctioned SafeW Technology and Anwen Technology. These Singapore and Cambodia-based firms allegedly supported Xinbi’s operations. SafeW provided the encrypted messaging platform used by the network.
Anwen allegedly developed XinbiPay, a crypto wallet and payment app. The Treasury reports Xinbi processed over $24 billion in crypto and fiat since 2022. The platform is linked to North Korean hackers and the Prince Group. The sanctions block US persons from transacting with these entities.
Coordinated enforcement against scam infrastructure
The Justice Department credited Tether with assisting in the investigation. This follows UK sanctions imposed in March against Xinbi. The UK froze assets and barred the platform from financial networks. The US action targets the service providers that allow these networks to function. Cointelegraph reports on the expanding scope of global enforcement efforts.
