US DOJ, Tether Restrain Over $52M from Xinbi Guarantee Scam Network
The U.S. Department of Justice has restrained over $52 million in crypto assets linked to the extensive Xinbi Guarantee scam network. S. Department of Justice (DOJ), with crucial assistance from stablecoin issuer Tether, has restrained more than $52 million in cryptocurrency.
This significant enforcement action, announced on September 9, 2026, targets the extensive Xinbi Guarantee scam network, a Chinese-language online marketplace accused of facilitating international fraud and money laundering.
U.S. Attorney Jeanine Ferris Pirro led the announcement of these actions, undertaken by the DOJ’s Scam Center Strike Force. The operation successfully seized approximately $12 million from two digital-asset wallets directly tied to Xinbi Guarantee and initiated restraint orders against 47 additional wallets implicated in suspected money-laundering activities.
Exposing the Xinbi Guarantee Scam Network
This operation marks a strategic shift for authorities, moving beyond individual fraud schemes to dismantle the underlying financial infrastructure of the Xinbi network. Xinbi operated as a service hub, allowing various criminal groups to advertise services, process payments, and funnel illicit proceeds through cryptocurrency wallets.
The two wallets specifically seized had accumulated around $12 million in payments, according to Tether. The broader request for restraint on 47 other wallets indicates a wider effort to disrupt the financial flows associated with Xinbi’s extensive money laundering operations.
U.S. Attorney Pirro’s office confirmed the $52 million restraint, highlighting the Scam Center Strike Force’s growing success. This action pushed the Strike Force’s total enforcement to date to an impressive $938 million, demonstrating an intensified commitment to combating digital asset fraud.
Investigators, including Assistant U.S. Attorneys Karen P. Seifert and Rick Blaylock, Jr. from the District of Columbia, alongside Assistant U.S. Attorney Mac Caille Peturrson from the District of Alaska, handled these seizures. Their efforts illustrate the complex, multi-jurisdictional nature of tackling such sophisticated criminal enterprises.
Tether’s Instrumental Role in Enforcement
Tether’s involvement proved pivotal, providing law enforcement with unique capabilities to freeze assets that wouldn’t exist for other cryptocurrencies like Bitcoin. As the issuer of USDT, Tether can block specific tokens held at identified addresses upon receiving valid requests from authorities, effectively halting illicit financial movements.
Paolo Ardoino, Tether’s Chief Executive Officer, underscored this point, stating that criminal organizations shouldn’t assume using digital assets places their funds beyond investigation. He emphasized that stablecoin infrastructure offers powerful tools for tracing and stopping illicit funds once wallets are identified.
This isn’t Tether’s first collaboration with U.S. law enforcement. In June 2025, the DOJ filed a civil forfeiture complaint for roughly $225.3 million in crypto linked to “pig butchering” investment fraud. That case saw Tether and crypto exchange OKX flagging suspicious accounts, leading to the tracing of multiple Tether token groups through a laundering network.
Tether has a long track record, having partnered with over 340 law enforcement agencies across 67 countries. Their cooperation has led to the freezing of more than $5 billion in illicit assets globally, with over $2.5 billion secured in collaboration with U.S. authorities alone.
Xinbi’s Persistent Operations and Broader Links
The Xinbi Guarantee network, despite drawing scrutiny long before this latest DOJ action, has shown remarkable resilience. Blockchain intelligence firm Elliptic estimated in May 2025 that Xinbi had processed at least $8.4 billion in transactions since 2022. By April 2026, this cumulative transaction volume surged to an estimated $21 billion.
Xinbi’s operations extend far beyond simple financial fraud. Researchers have linked the marketplace to money laundering, stolen data, fake investment platforms, and services for human trafficking networks. Its business entity was even incorporated in Colorado in 2022, providing a direct U.S. connection beyond the use of dollar-linked cryptocurrency.
In May 2025, Telegram blocked channels associated with Xinbi Guarantee and Huione Guarantee after researchers exposed their alleged roles in crypto scams. However, Xinbi eventually re-emerged through new channels, and other “guarantee marketplaces” absorbed displaced business, illustrating the adaptive nature of these criminal organizations.
Elliptic further reported that Tudou Guarantee, partly owned by Huione Group, more than doubled in size by June 2025, processing about $15 million in daily crypto payments. This demonstrates that simply removing messaging accounts fails to dismantle the underlying payment networks supporting these elaborate marketplaces.
Expanded US Enforcement Against Transnational Crime
This action against Xinbi Guarantee is part of a broader, intensified campaign by U.S. agencies to combat transnational cryptocurrency scam networks. The DOJ, FBI, Secret Service, and Treasury are increasingly coordinating efforts to target overseas operations that defraud Americans through fake crypto investments.
The Office of Foreign Assets Control (OFAC) designated Xinbi as a significant transnational criminal organization. OFAC also sanctioned Singapore-based SafeW Technology and Cambodia-based Anwen Technology for allegedly providing critical technological and financial support to Xinbi, widening the net of enforcement.
Enforcement efforts have spanned various tactics, including wallet seizures, civil forfeiture complaints, website takedowns, and sanctions against financial entities. Each approach requires identifying specific assets, accounts, or infrastructure linked to the illicit activities.
Separately, the Treasury’s Financial Crimes Enforcement Network (FinCEN) identified Cambodia-based Huione Group as a primary money laundering concern in May 2025. FinCEN’s findings alleged Huione laundered at least $4 billion in illicit proceeds between August 2021 and January 2025, including funds from North Korean cyber theft, crypto investment fraud, and other cyber scams.
International Collaboration and Future Outlook
The fight against these sophisticated networks increasingly relies on international cooperation. In a significant development, the U.S. District Court for the District of Columbia authorized the seizure of Telegram channels hosting the Xinbi Guarantee marketplace on September 7, 2026. This legal action highlights the ongoing battle to disrupt the communication infrastructure of scam operations.
A recent deployment to Madagascar, involving Strike Force agents, resulted in the dismantling of 13 Chinese-run scam compounds and the arrest of nearly 400 individuals. Agents spent two weeks assisting in processing over 3,200 devices, underscoring the massive scale of these global criminal enterprises.
Special Agent Tara McLeese of the U.S. Secret Service emphasized that criminals operating overseas should not believe they are beyond the reach of U.S. law enforcement, particularly after scamming funds from hardworking Americans. The integrated efforts across agencies and international borders reflect a concerted strategy to hold these perpetrators accountable.
The strategic investment by Tether in Crystal Intelligence, a blockchain analytics firm, further demonstrates the industry’s commitment to enhancing risk monitoring and fraud detection capabilities. Such partnerships are becoming essential in the ongoing effort to safeguard the crypto ecosystem from illicit activities.
While the DOJ’s National Cryptocurrency Enforcement Team (NCET) was disbanded in April 2025, signaling a shift in enforcement priorities, the establishment and ongoing success of the Scam Center Strike Force proves the U.S. government’s sustained focus on combating direct harm to victims through crypto-enabled fraud.
The legal challenges faced by Tether over its asset-freezing policy, such as the August 2026 complaint by two Thai nationals, also highlight the evolving legal and ethical complexities of these powerful enforcement tools.
The continued vigilance and proactive measures by law enforcement and stablecoin issuers are critical in building a more secure digital asset landscape. These actions send a clear message: the anonymity once associated with cryptocurrency transactions is rapidly diminishing, forcing criminal networks to adapt or face severe consequences from an increasingly sophisticated global enforcement apparatus.
As the regulatory environment matures, particularly concerning stablecoins, the interplay between technological capabilities and legal frameworks will remain a focal point. The ability to trace and freeze assets effectively is a powerful deterrent against those who seek to exploit digital finance for illicit gains, shaping the future of crypto security and compliance.