DOJ Freezes $52 Million in Crypto Linked to Xinbi Guarantee Scam Marketplace

The U.S. Department of Justice (DOJ) has made a significant move against cryptocurrency fraud, restraining around $52 million in assets linked to the Xinbi Guarantee, a Chinese-language marketplace on Telegram known for facilitating scam operations. This action took place on September 9, 2026, coinciding with sanctions imposed by the Treasury Department's Office of Foreign Assets Control (OFAC) against Xinbi and its affiliates, Anwen and SafeW Technology, labeling them as major transnational criminal organizations.

The DOJ's operation was bolstered by Tether, the issuer of the leading stablecoin, which assisted investigators in identifying and freezing relevant wallets. On the same day, authorities dismantled 13 Chinese-run scam compounds in Madagascar, resulting in approximately 400 arrests. These compounds often exploit forced labor, where individuals are trafficked under false pretenses and coerced into executing fraudulent schemes, particularly the 'pig butchering' scam, which involves building deceptive relationships to extract funds from victims.

The Strike Force, established in November 2025 under D.C. U.S. Attorney Jeanine Pirro, has now frozen or seized a total of $938 million in scam-related assets within less than a year of operations. This latest restraint highlights the increasing sophistication of law enforcement agencies in tracking and acting against cryptocurrency fraud.

Xinbi Guarantee has been implicated in a vast economy of scam operations, with Elliptic reporting at least $24 billion in transactions since 2022. Following the freeze, Xinbi attempted to convert approximately $2.8 million of its remaining USDT into Decentralized USD (USDD), a stablecoin that lacks issuer freeze capabilities, though it is partially backed by USDT, which can still be frozen.

New Developments in Fraud Cases

Federal prosecutors have indicted six individuals in connection with a scheme to steal over $5 million from banks and credit unions in the Twin Cities area. The defendants include Willie Roy Turner Jr., Marc Anderson, Billy Ray Cameron Jr., Devontay Colbert, Dontae Williams, and Takiya Shemwell.

The group attempted to deposit stolen business checks totaling more than $5.1 million and successfully took over $1.5 million. They allegedly opened fake accounts using stolen identities and deposited checks that were stolen from the mail.

Takiya Shemwell, who was employed by the U.S. Postal Service in Chicago, is accused of stealing checks and selling them to Turner Jr. and Cameron Jr. The charges against the group include conspiracy to commit bank fraud, bank fraud, aggravated identity theft, and conspiracy to commit mail fraud.