Treasury sanctions Xinbi Guarantee, a massive scam marketplace
Money MovesThe $24 billion platform was designated a transnational criminal organization; $52.8 million in crypto was frozen
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Overview
Updated 1 hour agoThe 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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People Involved
Organizations Involved
The Treasury Department's sanctions enforcement arm.
A Chinese-language illicit online marketplace connecting scam center operators with merchants.
A blockchain analytics firm that tracked Xinbi's wallet infrastructure for years.
A Justice Department task force targeting scam center operations.
Singapore-based developer of the SafeW messaging app used by Xinbi.
Cambodia-based developer of the XinbiPay wallet.
Timeline
January 2022 September 2026
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OFAC sanctions Xinbi; SCSF seizes infrastructure
Latest SanctionsTreasury designates Xinbi a transnational criminal organization. The DOJ's Scam Center Strike Force seizes its infrastructure and wallets.
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Secret Service freezes 52 wallets
EnforcementWallets holding $52.8 million in tether are frozen based on Elliptic intelligence. Xinbi begins moving funds to USDD.
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UK sanctions Xinbi Guarantee
SanctionsThe UK's Foreign, Commonwealth, and Development Office sanctions Xinbi, complementing later U.S. action.
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Trump signs Executive Order 14390
PolicyThe order directs the U.S. government to combat cybercrime, fraud, and predatory schemes against Americans.
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Xinbi migrates to new infrastructure
PivotXinbi moves to the SafeW messaging app and launches the XinbiPay wallet as scrutiny increases.
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Huione Guarantee closes
Market ShiftThe largest such marketplace, which processed $31 billion, closes after FinCEN named Huione Pay a money laundering concern.
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Xinbi Guarantee launches
LaunchThe 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.
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.
The marketplace was taken offline and Ulbricht was convicted on multiple charges.
Established the precedent that darknet marketplaces are not beyond the reach of U.S. law enforcement.
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.
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.
Liberty Reserve was shut down and Budovsky was extradited and convicted.
Demonstrated that U.S. law enforcement would pursue the financial infrastructure of cybercrime across borders.
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.
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.
Huione closed, and cybercriminals migrated to Xinbi Guarantee, which offered substantially similar services to an overlapping customer base.
Shows the whack-a-mole pattern: when one marketplace falls, another rises to take its place.
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.
