U.S.: Sanctions Against Xinbi Market, $52M in Crypto Blocked
The U.S. Department of Justice has seized Telegram channels for Xinbi and two wallets containing $12M, while blocking over $52M in crypto assets tied to the network. Supported by the Treasury and Tether, the operation designates Xinbi as a transnational criminal organization and targets its tech providers.
U.S. Seizes Telegram Channels and Two Xinbi Wallets
On September 10, 2026, the U.S. Department of Justice announced the seizure of two digital wallets used by Xinbi to receive payments from suppliers, containing approximately $12 million in crypto assets. This action is part of a broader investigation that identified an additional 47 wallets suspected of being used for money laundering within the network. According to the unsealed warrant, authorities also ordered the confiscation of Telegram channels hosting the marketplace, deemed essential for coordinating scams. The District of Columbia court authorized these seizures on September 7, marking a notable escalation in the fight against online fraud platforms (source: CoinTelegraph).
Investigators highlighted that suppliers exploited these channels to promote fraudulent investment sites, recruitment services for "scam compounds" in Southeast Asia, and money laundering operations. By targeting the communication infrastructure, authorities aim to cut off the funding avenues that enable scammers to operate on a large scale. This approach, which goes beyond arresting individual operators, reflects a strategy to dismantle illicit digital markets. The Department of Justice noted that the operation resulted from inter-agency cooperation, including the Financial Intelligence Bureau and the Treasury's investigative service.
Over $52M in Crypto Blocked in Coordinated Operation
Meanwhile, the Treasury's Office of Foreign Assets Control (OFAC) imposed restrictions on more than $52 million in crypto assets linked to Xinbi Guarantee and its network of vendors. This measure aims to freeze the funds to prevent future use in illicit activities. Authorities stated that the blocked crypto assets included stablecoins, ERC-20 tokens, and other widely used cross-border assets. The block was immediately effective, limiting access to U.S. exchange platforms and associated payment services.
On the same day, the court validated the seizure of the two wallets containing the $12 million mentioned earlier, enhancing the operation's scope. Prosecutors indicated that the frozen funds would undergo a restitution process for identified victims, though the process remains lengthy and complex. This action aligns with ongoing U.S. efforts to reduce the ability of criminal networks to exploit crypto assets for money laundering, a concern that has drawn regulator attention for years (source: CoinTelegraph).
Xinbi Network: $24M in Transactions Since 2022, Links to North Korea
The Treasury revealed that Xinbi had processed over $24 billion in crypto and fiat assets since 2022, primarily across Southeast Asia. This scale places Xinbi among the largest facilitators of illicit financial flows in the region, with daily transactions estimated in the tens of millions. The report also noted that the network was used by North Korean hackers and entities linked to the Prince Group, already under international sanctions.
These connections underscore the transnational nature of the problem, where state and non-state actors exploit digital financial system vulnerabilities. That Xinbi operated undetected for several years highlights current controls' limitations on messaging platforms and decentralized wallets. U.S. authorities emphasized that cooperation with messaging service providers and exchanges was crucial in identifying suspicious flows and disrupting money laundering chains (source: CoinTelegraph).
Treasury Sanctions: Designation of OCTG and Targeting SafeW and Anwen Technology
Meanwhile, OFAC designated Xinbi as a "significant transnational criminal organization" (STCO), a designation that freezes all U.S. assets of the entity and prohibits transactions with U.S. persons. Additionally, two tech providers were sanctioned: SafeW Technology, based in Singapore, and Anwen Technology, based in Cambodia. SafeW allegedly provided Xinbi with an encrypted messaging app as early as June 2025, amid increasing law enforcement pressure.
Anwen Technology is accused of developing XinbiPay, also known as NewPay, a mobile crypto wallet used by marketplace vendors. These tools enabled fraudsters to mask destination addresses and bypass traditional KYC controls. By designating these providers, the Treasury aims to cut access to the technological infrastructure enabling the network's operation, a decisive step toward neutralizing digital fraud platforms.
Implications for the Crypto Sector and International Cooperation
The Department of Justice credited stablecoin issuer Tether for its assistance in the investigation, highlighting the growing role of private actors in combating financial crime. This collaboration illustrates a new dynamic where crypto value chain actors cooperate with authorities to identify illicit flows. Meanwhile, the U.K. has already imposed sanctions on Xinbi as of March 26, freezing assets linked to the marketplace on its territory and banning platform access.
These joint actions by the U.S. and U.K. mark an escalation in international pressure on crypto-fraud markets. Analysts predict that other jurisdictions may follow suit, tightening compliance requirements for exchanges and messaging service providers. The blocking of $52 million in crypto assets and designation of Xinbi send a strong message to sector actors: Money laundering networks can no longer rely on the anonymity decentralized platforms offer without facing rigorous controls (source: CoinTelegraph).
