US Sanctions Xinbi After Seizing $52 Million in Crypto
The US Treasury Department sanctioned Xinbi on September 9, 2026. Authorities seized more than $52 million in digital assets. The platform processed over $24 billion in illicit flows.
The US Treasury Department sanctioned Xinbi on September 9, 2026. The Office of Foreign Assets Control listed the platform as a significant transnational criminal organization. The US Justice Department seized more than $52 million in cryptocurrency linked to the network. This action targets a marketplace used for industrial-scale fraud in Southeast Asia.
Xinbi functioned as an escrow service for illicit vendors. It connected operators of scam compounds with sellers of stolen data and forged documents. The platform processed the equivalent of over $24 billion in digital assets and fiat currency. Most settlements occurred using USDT on the TRON network.
Designations Target Core Infrastructure
OFAC designated two firms that built tools for the marketplace. Anwen Technology developed the XinbiPay wallet. SafeW Technology created the encrypted messaging app used by merchants. Fifty-two TRON addresses were added to the Specially Designated Nationals list. These entities formed the fallback infrastructure for the network.
The designation extends to entities owned by at least 50 percent by blocked persons. US persons are prohibited from dealing with these parties. Civil penalties apply on a strict-liability basis. Companies must report any property of designated parties within their control.
Seizure of Funds and Channels
The Scam Center Strike Force seized related digital asset wallets. Officials took down Telegram channels used for advertising laundering services. They also removed channels promoting fake investment sites. Telegram banned the Xinbi platform from its services. The seized funds were tied to the vendor network.
Blockchain analytics firms tracked the movement of funds. TRM Labs estimated over $36 billion in total throughput. Chainalysis noted that designated addresses received more than $8.4 billion in stablecoins. The XinbiPay hot wallet received $94.6 million in December 2025.
Regional Fraud Operations Expand
Investigators linked much of the activity to the Golden Triangle. Scam compounds in Myanmar, Thailand, and Laos used trafficked workers. These workers were lured by false job offers. Xinbi expanded its volume after rivals faced regulatory pressure. Daily inflows to the platform nearly doubled between May and December 2025.
US officials connected the platform to national security threats. North Korean-linked actors used Xinbi to move stolen funds. Chainalysis reported that wallets linked to the DPRK moved tens of millions of dollars. These funds originated from hacks of major exchanges like Bybit and WazirX. The funds were swapped for cleaner stablecoins via Xinbi vendors.
According to GN markets/crypto (en-US), the UK had already designated Xinbi in March 2026. Earlier US measures targeted the Prince Group and Huione. The current sanctions close remaining gaps in enforcement. Compliance teams must update their screening lists immediately. Any flow linked to the listed wallets now faces legal risk.
