US Dismantles Xinbi Marketplace, Seizes $52M in Crypto

Federal Agencies Target Major Illicit Marketplace

American law enforcement has executed a comprehensive enforcement operation against Xinbi Guarantee, a criminal marketplace that orchestrated large-scale fraud and money laundering activity globally. The Justice Department announced the action on September 10, 2026, resulting in the seizure and restraint of more than $52 million in cryptocurrency assets. The coordinated initiative represents one of the most substantial recent enforcement actions targeting a blockchain-enabled illicit platform.

The Justice Department’s Scam Center Strike Force secured authorization to seize two cryptocurrency wallets directly controlled by Xinbi for processing vendor transactions, recovering approximately $12 million in digital assets. Law enforcement simultaneously obtained court orders to restrain an additional 47 cryptocurrency wallets suspected of facilitating money laundering throughout the criminal ecosystem. The DOJ additionally seized control of Telegram channels that served as the marketplace’s primary communications backbone, with the seizure order issued by the U.S. District Court for the District of Columbia on September 7.

Support Infrastructure and Enablers Dismantled

Recognizing that illicit marketplaces depend on supporting infrastructure to function, the U.S. Treasury Department’s Office of Foreign Assets Control designated Xinbi as a significant transnational criminal organization. The Treasury simultaneously imposed sanctions on SafeW Technology, a Singapore-based firm, and Anwen Technology, headquartered in Cambodia, both allegedly providing critical technological and financial support to the criminal enterprise.

Investigative documents revealed how the platform operated, with vendors leveraging Xinbi’s Telegram channels to market money laundering services, fraudulent investment website creation, and recruitment for scam compounds operating throughout Southeast Asia. Treasury officials noted that Xinbi shifted portions of its merchant and money-laundering operations to SafeW’s encrypted messaging platform around June 2025 as enforcement scrutiny intensified. Anwen Technology developed XinbiPay, also known as NewPay, a cryptocurrency wallet application that functioned as a critical component of the marketplace’s technical infrastructure.

Financial records indicated that Xinbi facilitated more than $24 billion in combined cryptocurrency and traditional currency transactions since approximately 2022, with the majority of activity concentrated in the Southeast Asia region. Treasury officials connected the platform to usage by North Korean hacking groups and entities with ties to the sanctioned Prince Group.

International Coordination Against Crypto Crime

This enforcement action complements earlier sanctions imposed by the United Kingdom, which designated Xinbi on March 26 and froze associated assets while prohibiting the platform from accessing British financial and trade networks. The coordinated international approach reflects growing consensus among developed nations to interrupt criminal activity operating across cryptocurrency and traditional finance sectors. Notably, stablecoin issuer Tether provided substantial investigative support to federal authorities, demonstrating the crypto industry’s collaborative capacity with legitimate law enforcement objectives. Successful enforcement actions against illicit marketplaces reinforce that blockchain-based criminal activity remains traceable and prosecutable, ultimately strengthening cryptocurrency’s credibility and long-term institutional adoption.

Source: US Department of Justice, via Cointelegraph. Not financial advice.