The US Department of Justice (DOJ), through its Scam Center Strike Force, has frozen more than $52 million in crypto assets affiliated with the Southeast Asian black-market network Xinbi Guarantee.
Complementing the crypto asset freeze, the US District Court for the District of Columbia seized Xinbi’s Telegram channel on September 7, 2026 - an online platform the syndicate utilized to advertise money laundering services and promote various investment scam websites to the public.
A Money Laundering Hub Following Huione’s Fall
Forensic data from TRM Labs indicates that Xinbi stepped in as the primary escrow layer and cash-out hub for Southeast Asian scam compounds following the collapse of the Huione money laundering network.
The US Treasury’s Office of Foreign Assets Control (OFAC) responded by designating Xinbi as a transnational criminal organization for processing more than $24 billion in fund flows since 2022 specifically for scam syndicates.
Further analysis by TRM Labs revealed that total cumulative transaction volume across the Xinbi network reached $36 billion. The massive scale of these daily crypto flows prompted US authorities to expand their crackdown to the technology developers behind Xinbi’s application infrastructure.
Sanctions Target XinbiPay Developers in Singapore
OFAC widened the scope of its sanctions by blacklisting two Southeast Asian software technology firms: Singapore-based SafeW Technology and Cambodia-based Anwen Technology.
The two software development firms were sanctioned for creating the XinbiPay and NewPay applications - digital wallet services relied upon as daily transaction tools for Xinbi’s black-market operations.
USDT stablecoin issuer Tether also assisted US law enforcement in tracing on-chain crypto movements, enabling authorities to identify and directly freeze digital wallets holding funds for the Xinbi syndicate.
This joint tracing effort between private industry and law enforcement asset seizures cuts off a vital cash-out lifeline for Southeast Asian scam cartel operations. Reported by Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
