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Treasury sanctions Xinbi Guarantee, a massive scam marketplace

Treasury sanctions Xinbi Guarantee, a massive scam marketplace

Money Moves

The $24 billion platform was designated a transnational criminal organization; $52.8 million in crypto was frozen

Yesterday: OFAC sanctions Xinbi; SCSF seizes infrastructure

Overview

Updated 1 hour ago

The U.S. Treasury designated Xinbi Guarantee, a Chinese-language online marketplace, as a transnational criminal organization on September 9. The platform has processed more than $24 billion in digital assets since 2022, and the Justice Department seized its infrastructure the same day.

The action targets the financial plumbing behind Southeast Asia's scam centers, which steal billions from Americans each year. Xinbi's operators moved to USDD, a stablecoin with no freeze switch, after 52 wallets holding $52.8 million in tether were frozen.

Why it matters

Scam centers in Southeast Asia steal billions from Americans each year; this action targets the escrow platform that lets them operate.

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Key Indicators

$24B
Total transactions processed since 2022
Xinbi Guarantee has processed over $24 billion in digital assets and fiat currency, primarily in Southeast Asia.
$52.8M
Crypto frozen in 52 wallets
The Secret Service froze 52 wallets holding $52.8 million in tether, based on intelligence from Elliptic.
2
Supporting entities sanctioned
SafeW Technology and Anwen Technology were designated for supporting Xinbi's operations.
$31B
Huione Guarantee's total before closing
The predecessor marketplace processed $31 billion over four years before closing in May 2025.

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People Involved

Organizations Involved

Timeline

January 2022 September 2026

7 events Latest: Yesterday
Tap a bar to jump to that date
  1. OFAC sanctions Xinbi; SCSF seizes infrastructure

    Latest Sanctions

    Treasury designates Xinbi a transnational criminal organization. The DOJ's Scam Center Strike Force seizes its infrastructure and wallets.

  2. UK sanctions Xinbi Guarantee

    Sanctions

    The UK's Foreign, Commonwealth, and Development Office sanctions Xinbi, complementing later U.S. action.

  3. Trump signs Executive Order 14390

    Policy

    The order directs the U.S. government to combat cybercrime, fraud, and predatory schemes against Americans.

  4. Xinbi migrates to new infrastructure

    Pivot

    Xinbi moves to the SafeW messaging app and launches the XinbiPay wallet as scrutiny increases.

  5. Huione Guarantee closes

    Market Shift

    The largest such marketplace, which processed $31 billion, closes after FinCEN named Huione Pay a money laundering concern.

  6. Xinbi Guarantee launches

    Launch

    The Chinese-language escrow marketplace begins operations, connecting scam operators with merchants.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

October 2013

Silk Road takedown (2013)

The FBI shut down Silk Road, the first major darknet marketplace, in October 2013. Founder Ross Ulbricht, operating as 'Dread Pirate Roberts,' was arrested and later sentenced to life in prison.

Then

The marketplace was taken offline and Ulbricht was convicted on multiple charges.

Now

Established the precedent that darknet marketplaces are not beyond the reach of U.S. law enforcement.

Why this matters now

Like Xinbi, Silk Road was a trust-based marketplace for illicit transactions. Its takedown showed that law enforcement can dismantle such platforms by targeting their operators and infrastructure.

May 2013

Liberty Reserve shutdown (2013)

U.S. authorities shut down Liberty Reserve, a digital currency used for money laundering, in May 2013. The platform processed an estimated $6 billion in illicit transactions before its founder Arthur Budovsky was arrested in Spain.

Then

Liberty Reserve was shut down and Budovsky was extradited and convicted.

Now

Demonstrated that U.S. law enforcement would pursue the financial infrastructure of cybercrime across borders.

Why this matters now

Like Xinbi, Liberty Reserve was a financial platform that enabled criminal transactions at scale. Its takedown shows the pattern of targeting the payment rails rather than individual criminals.

May 2025

Huione Guarantee closure (2025)

Huione Guarantee, the largest illicit guarantee marketplace, processed $31 billion over four years before closing in May 2025. FinCEN named its parent company Huione Pay a primary money laundering concern, and Elliptic's tracking put pressure on the platform.

Then

Huione closed, and cybercriminals migrated to Xinbi Guarantee, which offered substantially similar services to an overlapping customer base.

Now

Shows the whack-a-mole pattern: when one marketplace falls, another rises to take its place.

Why this matters now

Xinbi absorbed much of Huione's business after it closed. The question now is whether Xinbi's fate will mirror Huione's, or whether the pattern repeats with a new platform.

Sources

(10)