Treasury sanctions Xinbi Guarantee, a massive scam marketplace

Overview

Updated Sep 10

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.

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.

Voices

Curated perspectives — historical figures and your fellow readers.

People Involved

Scott Bessent

U.S. Secretary of the Treasury

Announced the sanctions on Xinbi Guarantee

Justin Sun

Founder of TRON and TRON DAO Reserve

His USDD stablecoin is Xinbi's migration target

Organizations Involved

U.S. Treasury — Office of Foreign Assets Control (OFAC)

Federal Agency — Treasury Department sanctions unit

Designated Xinbi Guarantee as a transnational criminal organization

The Treasury Department's sanctions enforcement arm.

Xinbi Guarantee

Criminal Organization

Sanctioned by OFAC; infrastructure seized

A Chinese-language illicit online marketplace connecting scam center operators with merchants.

Elliptic

Blockchain Analytics Firm

Provided intelligence that enabled the freeze

A blockchain analytics firm that tracked Xinbi's wallet infrastructure for years.

Scam Center Strike Force

DOJ Task Force

Seized Xinbi's infrastructure and wallets

A Justice Department task force targeting scam center operations.

SafeW Technology Co., Ltd.

Technology Company

Sanctioned for supporting Xinbi

Singapore-based developer of the SafeW messaging app used by Xinbi.

Anwen Technology Co., Ltd.

Technology Company

Sanctioned for supporting Xinbi

Cambodia-based developer of the XinbiPay wallet.

Timeline

January 2022 September 2026

7 events Latest: September 9th, 2026 · 2 months ago

Tap a bar to jump to that date

September 2026
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.
September 9th, 2026
Secret Service freezes 52 wallets
Enforcement

Wallets holding $52.8 million in tether are frozen based on Elliptic intelligence. Xinbi begins moving funds to USDD.
September 8th, 2026
March 2026
UK sanctions Xinbi Guarantee
Sanctions

The UK's Foreign, Commonwealth, and Development Office sanctions Xinbi, complementing later U.S. action.
March 26th, 2026
Trump signs Executive Order 14390
Policy

The order directs the U.S. government to combat cybercrime, fraud, and predatory schemes against Americans.
March 6th, 2026
June 2025
Xinbi migrates to new infrastructure
Pivot

Xinbi moves to the SafeW messaging app and launches the XinbiPay wallet as scrutiny increases.
June 2025
May 2025
Huione Guarantee closes
Market Shift

The largest such marketplace, which processed $31 billion, closes after FinCEN named Huione Pay a money laundering concern.
May 2025
January 2022
Xinbi Guarantee launches
Launch

The Chinese-language escrow marketplace begins operations, connecting scam operators with merchants.
January 1st, 2022

Scenarios

Xinbi Guarantee collapses as trust evaporates

Likely Resolves by Q1 2027

Discussed by: Elliptic analysts

The freeze showed merchants and users that their wallets can be identified and frozen at any time. The escrow model depends on trust, and that trust is broken. Xinbi's main Telegram channel was already gone by September 9, and the platform's operators face an uphill battle to restore confidence.

Xinbi survives by migrating to USDD and new infrastructure

Possible Resolves by Q1 2027

Discussed by: Unchained Crypto

Xinbi's operators announced a shift to USDD, which has no freeze switch. They exchanged about $2.8 million of remaining tether into USDD within hours of the freeze. The platform may rebuild on new channels and continue operating, though USDD's decentralization claims are contested and it is partly collateralized with freezable tether.

Criminal prosecutions follow the sanctions

Possible Resolves by End of 2027

Discussed by: DOJ Scam Center Strike Force

The SCSF seized infrastructure and wallets under a federal warrant. Individual operators and merchants could face criminal charges in U.S. courts. The DOJ's Scam Center Strike Force was created specifically to pursue these cases, and the sanctions provide a foundation for prosecution.

Historical Context

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

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.

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.