The **U.S. Department of Justice (DoJ)** announced a major crackdown on **Xinbi Guarantee**, an illicit online marketplace notorious for offering a suite of scam-related services. This coordinated action saw the seizure of Telegram channels used to operate the service, the confiscation of two cryptocurrency wallets, and the deployment of the **Scam Center Strike Force** to Madagascar, where 13 scam compounds run by Chinese organized crime syndicates were disrupted. "Approximately $52 million of cryptocurrency involved in scam money laundering was restrained in one day, bringing the total restrained by the Scam Center Strike Force to approximately $938 million," the DoJ stated. In parallel, the **Treasury Department's Office of Foreign Assets Control (OFAC)** has sanctioned the Chinese-language media outlets involved in facilitating cyber scams, fraud, money laundering, and other criminal activities targeting Americans. **Xinbi Guarantee** is a Telegram-centric marketplace that gained prominence after the closure of similar storefronts, **HuiOne Guarantee** and **Tudou Guarantee**, last year. According to blockchain analytics firm **Elliptic**, which collaborated with the **U.S. Secret Service** on the operation, **Xinbi** is the second-largest illicit marketplace ever, having processed $30 billion in transactions since its inception around 2022.  ### How Xinbi Facilitated Scams Like its predecessors, **Xinbi** served as an intermediary between vendors and scam center operators, primarily those running "pig butchering" romance scams. It offered a comprehensive platform for various illicit services, including the creation of custom scam investment websites, money laundering for funds obtained from wire fraud victims, and the recruitment of trafficking victims to work in scam compounds across Southeast Asia. "Once a scammer 'purchases' a service from the vendor, **Xinbi** as an organization holds money to be paid to the vendor until the vendor's services are complete, to assure the scammers that the vendors will perform the services," the DoJ explained. ### Connections to Notorious Groups The Treasury Department further revealed that **Xinbi Guarantee's** platform has reportedly been used by **North Korean hackers** and several **OFAC-designated entities**, including **Jin Bei Group Co., Ltd.** and entities associated with the **Prince Group TCO**. ### Cryptocurrency Seizures and Operational Expansion Beyond dismantling Telegram channels and banning associated usernames, the **Scam Center Strike Force** seized two cryptocurrency wallets used by **Xinbi** to collect vendor payments, holding approximately $12 million. In total, $52.8 million in **Tether's USDT** stablecoin was frozen from 52 wallets linked to **Xinbi** and its network of merchants. "After scamming money from hardworking Americans, criminals operating overseas laundered it through the **Xinbi Guarantee** network, which operated under the false assumption that they were out of the reach of U.S. law enforcement," stated Tara McLeese, Special Agent in Charge of the **U.S. Secret Service Washington Field Office**.  The **DoJ** also announced the expansion of the **Scam Center Strike Force's** scope to target scam center compounds globally. This initiative has already led to the takedown of 13 scam centers in Madagascar, the confiscation of over 3,200 electronic devices, and the opening of investigations based on interviews with nearly 400 arrestees. Notably, roughly 30 Chinese leaders of these scam compounds have been repatriated to China. ### The Shift to USDD and Future Challenges Historically, all payments on **Xinbi** were made in **Tether's USDT** stablecoin, primarily on the **TRON** blockchain. Following the asset freeze, **Xinbi** has reportedly switched to **USDD** ("Decentralized USD"), another stablecoin. **Elliptic** estimates that **Xinbi** exchanged approximately $2.8 million of its remaining **USDT** assets into **USDD** via a decentralized exchange. However, **Dr. Tom Robinson**, Founder and Chief Scientist at **Elliptic**, cautioned, "Unlike **USDT**, which is issued by **Tether** and has a built-in feature that allows the company to freeze wallets, **USDD** has no central issuer or freezing capability. However, its claims of decentralization are contested, and it is still exposed to freezing risk, since **USDD** is partly collateralized with freezable **USDT**." **Dr. Robinson** noted a growing concern among Guarantee marketplaces regarding the use of **USDT** and the risk of wallet freezes, leading to discussions about alternatives like **USDD**. While acknowledging the possibility of **Xinbi** resurfacing under a new name, similar to **HuiOne Guarantee** becoming **Tudou Guarantee**, he believes it will be challenging for **Xinbi** to survive long-term. These latest actions follow the U.K.'s sanctioning of **Xinbi** five months prior for providing cryptocurrency-based services to scam centers, including stolen personal data and satellite internet equipment. **Elliptic** describes this recent enforcement as a "severe setback" for the Guarantee marketplace ecosystem, eroding the trust between merchants and criminal users and undermining the core mechanisms these marketplaces rely on to function.