US freezes $938M in scam crypto

TLDR

US federal authorities have frozen about $938 million in cryptocurrency tied to large-scale scam and laundering networks using the Xinbi Guarantee marketplace on Telegram.

1. The seizure comes from a Justice Department strike force targeting Xinbi Guarantee, with tens of millions restrained in a single day and dozens of wallets affected.
2. Xinbi processed over $24 billion and was used by North Korean hackers and sanctioned crime groups, making it a central hub for laundering scam proceeds.
3. For regular crypto users, this shows growing enforcement against off-platform laundering networks and higher risk when interacting with informal escrow or guarantee markets.

Deep Dive

1. Scale Of The Seizure

US authorities report having restrained about $938 million in scam-linked cryptocurrency as part of the Justice Departments Scam Center Strike Force, focusing on Xinbi Guarantees network of wallets and payment channels.

In one recent operation, around $52 million was restrained in a single day, and two payment wallets with roughly $12 million were seized, alongside restraint actions on 47 additional wallets believed to support money laundering on Xinbis network.

A federal court also authorized the seizure of Xinbis Telegram channels on 7 September 2026, effectively disrupting the platforms primary communication and coordination infrastructure for criminal vendors.

2. Xinbis Role In Scam Laundering

Xinbi Guarantee operated as an escrow-style marketplace on Telegram, holding buyers payments until vendors completed services, and became a venue where laundering services and custom investment scam websites were openly advertised.

According to US Treasury designations, Xinbi processed more than $24 billion in digital assets and fiat currencies since around 2022, mostly supporting Southeast Asian transactions and including activity by North Korean hackers and sanctioned entities such as the Jin Bei Group.

Treasury recently designated Xinbi, Singapore-based Safew Technology, and Cambodia-based Anwen Technology for supporting these operations, noting that Xinbi had already started migrating merchants to other encrypted messaging apps and launching its own crypto payment app and wallet.

3. Impact On Crypto Users

This action reinforces a trend: law enforcement is increasingly targeting the infrastructure that launders scam proceeds, not just individual scam websites or fake tokens, and is willing to freeze large pools of crypto tied to those networks.

For everyday users, the main practical impact is higher risk if funds ever touch such guarantee or laundering marketplaces, since wallets interacting with them can be traced and later restrained when enforcement actions hit those networks.

Chainalysis has estimated that similar networks processed over $16.1 billion in illicit crypto in 2025, suggesting that more platforms beyond Xinbi could be targeted as investigators follow money flows across exchanges, OTC desks, and messaging apps.

Conclusion

The freezing of $938 million in scam-linked crypto shows that US agencies are progressively dismantling the plumbing behind large fraud ecosystems, not just chasing individual scams.

As more laundering hubs like Xinbi face sanctions and seizures, the line between grey services and outright illicit infrastructure is narrowing, making counterparty choice and transaction routing an increasingly important risk factor for crypto holders and businesses.