WASHINGTON (TNND) — The Justice Department announced on Tuesday that it has taken control of Telegram channels and cryptocurrency wallets associated with Xinbi Guarantee, a Chinese-language platform boasting over 650,000 users. This marketplace is accused of providing services to online scam operations targeting U.S. citizens.
The DOJ’s Scam Center Strike Force, in collaboration with the Treasury Department, acted against Xinbi, which reportedly functioned as an escrow service for scam vendors and operators on Telegram. Authorities stated that they froze more than $52 million in cryptocurrency tied to money laundering activities in just one day, raising the total amount of restrained funds to approximately $938 million.
According to the seizure warrant, Xinbi facilitated a Chinese-language marketplace on Telegram where vendors showcased scam investment websites, services for money laundering, and recruitment strategies for trafficking victims to work in Southeast Asian scam centers, as per the DOJ’s claims.
Once a scammer purchased a service, Xinbi supposedly held the payment in escrow until the vendor fulfilled the order, providing a guarantee that the service would be delivered. Investigators tracked funds from U.S. victims to vendors that advertised money-laundering services and displayed cryptocurrency wallets for transactions on Telegram, the department noted.
“If organized crime from China can buy customized websites and money laundering services as easily as ordering food, every American with a retirement fund is at risk,” stated U.S. Attorney Jeanine Pirro. “My Strike Force will continue its efforts to dismantle Chinese organized crime and protect the interests of Main Street America.”
A federal judge in Washington approved the seizure of the Telegram channels hosting the marketplace on September 7, according to the DOJ. The warrant also allowed for the confiscation of two cryptocurrency wallets that Xinbi allegedly used to gather vendor payments; together, these contained about $12 million.
Law enforcement also aimed to restrict 47 more cryptocurrency wallets believed to be involved in money laundering through Xinbi’s operations and its vendor network. The coordinated efforts managed to freeze over $52 million in cryptocurrency, the DOJ confirmed, adding that assistance from stablecoin issuer Tether was valuable in the investigation.
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) separately designated Xinbi as a significant transnational criminal entity and identified various cryptocurrency wallets linked to it. Officials also sanctioned SafeW Technology Co., based in Singapore, and Cambodia’s Anwen Technology Co., stating they significantly supported Xinbi’s activities.
The OFAC indicated that Xinbi had facilitated over $24 billion in transactions involving digital and traditional currencies since its inception around 2022. It further noted that Xinbi began shifting parts of its merchant and money-laundering network to the SafeW messaging app around June 2025 as legal scrutiny intensified. Additionally, Xinbi introduced XinbiPay, also known as NewPay, a cryptocurrency wallet and payment system.
The FBI reported approximately 453,000 cyber-enabled fraud complaints in 2025, resulting in total losses exceeding $17.7 billion, according to their findings. Investment fraud constituted nearly half of these scam-related losses, with victims reporting over $11 billion in cryptocurrency fraud losses.
Pirro also announced that the Strike Force is widening its focus to include scam operations globally. A team spent two weeks in Madagascar aiding local authorities in dismantling 13 scam centers allegedly run by Chinese organized-crime groups.
The team processed over 3,200 electronic devices, and investigators from the Strike Force initiated their own inquiries after interviewing nearly 400 individuals arrested during the operation, including around 30 alleged Chinese leaders of the scam centers, who were repatriated to China by their government, as reported by the DOJ.
FBI officials are urging individuals who suspect they have fallen victim to scams to act promptly, as quick responses can enhance the likelihood of tracing or freezing transactions. Victims should cease any further money transfers, alert their banks, and file a report at ic3.gov.