The U.S. Department of Justice said on Sept. 9 that its Fraud Section’s anti-fraud task force and the Treasury Department carried out a coordinated enforcement action against Xinbi Guarantee, an illegal scam-services marketplace that allegedly operated mainly through Telegram. Authorities said they seized and restricted more than $52 million in crypto in a single day, lifting the task force’s total restrained assets to roughly $938 million.
According to the Justice Department, Xinbi provided services to fraud groups including customized investment scam websites and money laundering support, and also recruited trafficking victims to work in scam compounds in Southeast Asia. Law enforcement seized Xinbi’s Telegram channel, along with two crypto wallets holding about $12 million in total, and restricted another 47 related wallets. Tether provided proactive assistance in the investigation.
The Treasury Department’s Office of Foreign Assets Control also designated Xinbi as a significant transnational criminal organization and sanctioned two additional entities that supported it. The Justice Department added that the task force also helped Madagascar shut down 13 scam compounds run by Chinese criminal groups, process more than 3,200 electronic devices, and arrest nearly 400 people locally.
The U.S. Department of Justice said on Sept. 9 that its anti-fraud task force and the Treasury Department had taken coordinated enforcement action against Xinbi Guarantee, seizing and restricting more than $52 million in crypto assets in a single day.
The department said the action brought the task force’s cumulative restrained assets to about $938 million. Tether provided proactive assistance in the investigation.
According to the Justice Department, Xinbi was an illegal scam-services marketplace that operated mainly through Telegram. It allegedly offered fraud groups customized investment scam websites, money laundering services, and recruitment of trafficking victims to work in scam compounds in Southeast Asia.
Law enforcement authorities seized Xinbi’s Telegram channel and two crypto wallets that together held about $12 million, while also restricting another 47 related wallets.
The Treasury Department’s Office of Foreign Assets Control also designated Xinbi as a significant transnational criminal organization and sanctioned two other entities that supported it.
The Justice Department said the task force also helped Madagascar shut down 13 scam compounds run by Chinese criminal groups, process more than 3,200 electronic devices, and arrest nearly 400 people there.
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