TLDR
US federal authorities have now frozen about $938 million in scam-linked cryptocurrency after a major crackdown on the Xinbi Guarantee marketplace that ran through Telegram.
- A Justice Department strike force has restrained $938 million in scam-related crypto, including $52 million in a single-day operation against Xinbi Guarantee.
- Xinbi Guarantee allegedly processed over $24 billion and was reportedly used by North Korean hackers and other sanctioned scam networks.
- The action signals tighter global coordination on scam infrastructure and more scrutiny on messaging-based markets, which everyday crypto users should factor into their risk management.
Deep Dive
1. Scale Of The Crackdown
The Justice Departments Scam Center Strike Force reports that it has now restrained approximately $938 million in scam-linked cryptocurrency, accumulated across multiple operations.
In the latest move, authorities targeted the Xinbi Guarantee marketplace, securing court approval on 7 September 2026 to seize its Telegram channels and two payment wallets holding about $12 million, and restraining $52 million in scam-linked crypto in a single day, plus 47 additional wallets connected to laundering activity on its network.
According to reporting on the Xinbi Guarantee marketplace on Telegram, this strike is part of a broader campaign that has already pushed the restrained total close to $1 billion.
Large, coordinated operations can freeze substantial scam flows, limiting criminals ability to cash out even after victims have been defrauded.
2. How Xinbi And Similar Scam Markets Operate
Xinbi Guarantee functioned as an escrow-style marketplace, holding buyer payments until vendors delivered services, and was heavily used to advertise laundering services and custom investment scam websites.
Vendors and customers connected through Telegram channels and later other encrypted messaging apps, creating a semi-closed ecosystem where scammers could route funds and spin up convincing fake platforms.
Analytics cited in the same reporting note that similar illicit networks processed an estimated $16.1 billion in scam and criminal cryptocurrency in 2025, underscoring that while illicit activity is a small share of total crypto volume, it is highly concentrated in specialist infrastructure like Xinbi.
The biggest risk is not a single coin, but organized networks that weaponize messaging platforms, escrow tools, and fake websites to move and disguise stolen funds.
3. Sanctions, Global Coordination, And User Impact
The U.S. Treasurys Office of Foreign Assets Control has designated Xinbi Guarantee and support companies in Singapore and Cambodia, highlighting reported use of the marketplace by North Korean hackers and previously sanctioned scam groups.
Investigators have also assisted foreign authorities, including operations against scam centers in Madagascar, showing that enforcement now targets both the digital rails and the physical compounds behind them.
For regular users, this environment likely means more screening, stricter compliance on cross-border flows, and occasional disruption when intermediaries overcorrect, but it also improves the odds that large scam operations are disrupted before they scale further.
Using regulated venues, being skeptical of guarantee schemes, and avoiding off-platform deals is increasingly important as authorities harden the line between legitimate crypto and scam infrastructure.
Conclusion
US authorities freezing $938 million in scam-linked crypto reflects a shift toward dismantling the infrastructure behind fraud rather than chasing individual victims or coins.
For crypto users, the practical takeaway is that enforcement can and does reach into messaging apps and cross-border payment networks, so aligning with transparent platforms and cautious practices is one of the strongest defenses against this kind of activity.
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