US authorities freeze $938M in scam crypto

TLDR

US federal authorities have restrained about $938 million in scam-linked cryptocurrency tied to the Xinbi Guarantee marketplace on Telegram, marking one of the largest U.S. crypto fraud crackdowns.

1. The Justice Departments Scam Center Strike Force targeted Xinbi Guarantee, seizing key Telegram channels and wallets that together account for roughly $938 million in scam?linked crypto.
2. Xinbi and similar guarantee markets processed tens of billions of dollars for Southeast Asian scam operations and even sanctioned groups, highlighting how crypto rails are embedded in global fraud.
3. The case signals more coordinated actions against messaging?app based laundering networks, so users should expect tighter screening and higher enforcement risk around shady escrow and investment services.

Deep Dive

1. What Was Frozen And How

Federal authorities have restrained approximately $938 million in cryptocurrency linked to scams, centering on a crackdown on the Xinbi Guarantee marketplace that operated via Telegram, according to detailed reporting on the operation. The Justice Departments Scam Center Strike Force reportedly seized Xinbis Telegram channels on 7 September 2026 and took control of two payment wallets holding about $12 million, while restraining $52 million in one day and targeting 47 additional wallets believed tied to money laundering and scam vendors on Xinbis network. Treasurys Office of Foreign Assets Control followed up on 9 September 2026 by designating Xinbi Guarantee and supporting companies Safew Technology in Singapore and Anwen Technology in Cambodia as facilitators of messaging and payment services for the platform, effectively cutting them off from the U.S. financial system.

2. Scale And Scam Ecosystem Impact

Since around 2022, Xinbi Guarantee is reported to have processed more than $24 billion in transactions across digital assets and fiat, primarily for Southeast Asian flows, functioning as an escrow service where payments are held until vendors deliver services, including custom scam websites and laundering. U.S. authorities say Xinbi was used by North Korean hackers and sanctioned entities such as the Jin Bei Group, which had already been targeted for fraud and human trafficking, underscoring that some of the frozen funds are attached to higher?risk national security and human rights concerns. External analysis estimated that similar networks processed $16.1 billion in illicit cryptocurrency in 2025, even excluding guarantee platforms like Xinbi and Huione, which shows that the $938 million figure is part of a much larger illicit crypto economy rather than an isolated case.

3. What To Watch Next

Officials also highlighted related deployments, such as U.S. investigators assisting Madagascar authorities in dismantling 13 Chinese?run scam compounds and processing more than 3,200 devices and hundreds of suspects, suggesting future announcements could link more physical scam hubs to these online guarantee networks. For crypto users, the trajectory points toward increased monitoring of messaging app based escrow markets, OTC money?laundering services, and custom investment portals that promise high returns while routing funds through crypto. Further wallet seizures, new sanctions designations, or guidance to exchanges and stablecoin issuers on screening flows from such platforms would be the clearest signals that enforcement is expanding beyond Xinbi.

Conclusion

U.S. authorities freezing $938 million in scam?linked crypto shows a shift from chasing individual frauds to dismantling the marketplace infrastructure that enables them. For the broader crypto ecosystem, the move reinforces that illicit flows are large but increasingly traceable, and that platforms blending messaging, escrow, and laundering face rising legal and sanctions pressure that users cannot ignore.