- The US Justice Department said it froze more than $52 million in cryptocurrency linked to the Chinese-language illicit marketplace Xinbi Guarantee.
- The US Treasury Department said it designated Xinbi Guarantee a “significant transnational criminal organization” and added related companies to its sanctions list.
- The sanctions will freeze assets and property interests in the United States belonging to Xinbi Guarantee and related companies, and bar transactions with US persons.
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US authorities have frozen more than $52 million in cryptocurrency linked to Xinbi Guarantee, a Chinese-language illicit marketplace accused of facilitating money laundering for fraud rings in Southeast Asia.
Cointelegraph reported on September 10 that the US Justice Department’s Scam Center Strike Force carried out a joint crackdown targeting Xinbi Guarantee and a network of related companies.
The Justice Department seized two Xinbi Guarantee crypto wallets used to receive payments from vendors. The wallets held about $12 million in digital assets. Separately, authorities moved to freeze assets in 47 wallets suspected of being tied to money laundering in the Xinbi network, bringing the total value targeted to more than $52 million.
A federal court in Washington on September 7 approved the seizure of the Telegram channel that hosted Xinbi Guarantee’s marketplace. An unsealed warrant showed the channel offered services including money laundering, the creation of customized websites for investment scams and the recruitment of workers for fraud compounds in Southeast Asia.
Stablecoin issuer Tether also cooperated with the investigation.
The US Treasury Department took action against Xinbi Guarantee the same day, designating it a “significant transnational criminal organization” and imposing sanctions. SafeW Technology, based in Singapore, and Anwen Technology, based in Cambodia, were also sanctioned for allegedly providing technical and financial services to Xinbi.
According to the Treasury Department, Xinbi Guarantee has processed more than $24 billion in cryptocurrency and fiat-currency transactions since around 2022. Most of the activity was concentrated in Southeast Asia. North Korean hackers and organizations tied to the Prince Group, which is under US sanctions, also used the platform.
Under the sanctions, any assets and property interests held in the United States by Xinbi Guarantee and the designated companies will be frozen. Transactions with US persons are also generally prohibited.
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