The U.S. Department of Justice credited Tether with helping restrain more than $52 million in cryptocurrency tied to Xinbi Guarantee and vendors accused of servicing international scam operations.
The DOJ’s Scam Center Strike Force seized two cryptocurrency wallets used by Xinbi to collect vendor payments, holding approximately $12 million, and sought restraint of another 47 wallets believed to be connected to money laundering across the network. The DOJ specifically thanked Tether for its proactive assistance in the investigation.
Xinbi Connected Scammers With Money Laundering Services
Xinbi operated a Chinese-language Telegram marketplace where vendors offered services to scam-center operators, including money laundering, custom fraudulent investment websites and recruitment for scam compounds in Southeast Asia.
A federal court in Washington authorized the seizure of Xinbi’s Telegram channels on September 7. Investigators traced funds belonging to U.S. victims to vendors advertising laundering services through the marketplace and posting cryptocurrency addresses for payment.
The financial action followed a $39.3 million USDT freeze across 10 Tron addresses linked to Xinbi Guarantee on September 8. Blockchain-tracking firm MistTrack identified 39,273,713 USDT as frozen across those addresses, including one holding more than $10 million.
Tether’s subsequent statement on the DOJ operation confirmed its cooperation with U.S. authorities but did not specify that its address controls accounted for the entire $52 million restrained by the Strike Force.
Treasury Sanctions Xinbi as Transnational Criminal Organization
The Treasury Department coordinated with the DOJ operation by sanctioning Xinbi Guarantee as a significant transnational criminal organization. OFAC also designated two entities accused of supporting Xinbi through digital currency and other financial services.
Property belonging to the sanctioned entities that falls within U.S. jurisdiction is blocked under the designation. The action extends Washington’s pressure on financial infrastructure connected to Southeast Asian scam centers, where cryptocurrency has been used to receive victim funds and move proceeds through cross-border laundering networks.
Tether has participated in previous U.S. actions involving similar schemes, including a $61 million USDT seizure tied to cryptocurrency investment fraud earlier this year.
Strike Force Restraints Approach $938 Million
The latest action lifted the Scam Center Strike Force’s total restrained cryptocurrency to approximately $938 million since the initiative launched in November 2025.
The Strike Force combines the U.S. Attorney’s Office for the District of Columbia with the DOJ Criminal Division, FBI, Secret Service and other federal partners. Its current operations target cryptocurrency investment fraud, money laundering, cyber-enabled scams and criminal networks operating scam compounds across Southeast Asia and other regions.
U.S. authorities also deployed a Strike Force team to Madagascar as part of the September operation, supporting local authorities in dismantling 13 Chinese-run scam centers and processing more than 3,200 electronic devices. Investigations were opened following interviews with nearly 400 people arrested during the operation.
