US sanctions Xinbi scam marketplace, restrains $52M in crypto

Justice Department Seizes Xinbi Assets

The US Justice Department said its Scam Center Strike Force seized two wallets used by Xinbi to collect vendor payments containing about $12 million. Law enforcement also sought restraints against 47 additional wallets believed to be connected to money laundering across Xinbi's network. In total, US authorities restrained more than $52 million in crypto linked to Xinbi Guarantee and its vendor network.

The US District Court for the District of Columbia authorized the seizure of Telegram channels hosting the marketplace on Sept. 7. According to the unsealed warrant, vendors used the channels to advertise money laundering, custom scam-investment websites, and recruitment services for scam compounds in Southeast Asia.

The DOJ credited stablecoin issuer Tether with assisting in the investigation.

Treasury Sanctions Xinbi and Technology Providers

In a coordinated action, the US Treasury Department said its Office of Foreign Assets Control (OFAC) designated Xinbi as a significant transnational criminal organization. OFAC also sanctioned the following entities for allegedly providing technological and financial support to Xinbi:

• SafeW Technology - Singapore-based
• Anwen Technology - Cambodia-based

According to the Treasury, Xinbi began moving its merchant and money-laundering networks to SafeW's encrypted messaging application around June 2025 as law-enforcement scrutiny intensified. Anwen allegedly developed XinbiPay, also known as NewPay, a crypto wallet and payment application used by the marketplace.

The Treasury said Xinbi has processed over $24 billion in crypto and fiat since around 2022, primarily through Southeast Asia. The department said its platform has been used by North Korean hackers and entities connected to the sanctioned Prince Group.

The sanctions block Xinbi's US property and interests and generally prohibit US persons from transacting with the designated entities.

UK Sanctions Context

The latest US action follows UK sanctions imposed against Xinbi. On March 26, the UK government imposed sanctions on Xinbi aimed at cutting the platform off from crypto access. Under the sanctions, UK assets connected to Xinbi will be frozen, and the platform will be barred from the country's financial, trade, and travel networks.

Related: Tether sued over $42M in frozen coins, 6,600 students get crypto loans: Asia Express