U.S. Department of Justice Freezes $52 Million in Cryptocurrency in a Single Day, Targets China-Operated Scam Market

According to an official announcement from the U.S. Department of Justice, the DOJ's Fraud Center Task Force announced on September 9 that it executed a takedown of Xinbi Guarantee, an illegal fraud service marketplace operated out of China, freezing more than $52 million in cryptocurrency within a single day. This brings the task force's total frozen assets to approximately $938 million. Operating on Telegram, Xinbi is a Chinese-language illicit marketplace that provides scam center operators with customized fraud websites, cryptocurrency money laundering, and human trafficking recruitment services. Pursuant to court orders, law enforcement seized the platform's Telegram channel and two cryptocurrency wallets containing approximately $12 million, while also freezing an additional 47 linked wallets. Concurrently, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Xinbi as a Significant Transnational Criminal Organization and imposed sanctions. In parallel, the task force extended its operations to Africa, deploying a team to Madagascar to assist local authorities. The operation successfully dismantled 13 scam centers run by Chinese organized crime syndicates, confiscated over 3,200 electronic devices, and led to nearly 400 arrests, including the repatriation of approximately 30 Chinese national ringleaders to China. According to data from the FBI Internet Crime Complaint Center (IC3), losses suffered by U.S. victims from cryptocurrency investment scams reached $8.65 billion in 2025, representing an 89% increase compared to 2023.