US DOJ Freezes $52 Million in Cryptocurrency... China's Fraud Market Finally Caught

▲ US Department of Justice, Chinese hackers, cryptocurrency freeze/AI generated image

The U.S. Department of Justice has shut down a Chinese-language-based fraud marketplace and seized over $52 million in cryptocurrency.

According to crypto media outlet Cryptopotato on September 13 (local time), the U.S. Department of Justice (DOJ) Scam Center's joint investigation team, along with the Treasury Department, seized Xinbi Guarantee. Approximately $52 million in cryptocurrency was frozen in one day. The assets seized by the joint investigation team since its launch have increased to approximately $938 million.

Xinbi Guarantee operated primarily through Telegram. Sellers offered services such as creating fraudulent investment sites, laundering funds from financial fraud, and recruiting human trafficking victims to be used in fraud organizations. The platform operated by holding funds until transactions were completed. Prosecutors tracked the path of victims' funds to sellers' wallets through this structure.

Investigators seized approximately $12 million from two cryptocurrency wallets used to receive seller payments. Additional freezing measures were pursued for 47 wallets connected to the network. The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) designated Xinbi Guarantee as a transnational criminal organization. Assets held within the U.S. were also subject to freezing.

The crackdown extended to Africa. A separate joint investigation team assisted Madagascar authorities in shutting down 13 fraud organization strongholds operated by Chinese nationals. Over 3,200 devices were examined, and approximately 400 arrested individuals were interviewed over two weeks. U.S. Attorney for Alaska, Michael Heyman, stated, “Transnational criminal organizations do not care about borders, and neither does the Department of Justice.”

Xinbi Guarantee's cryptocurrency transaction volume was already substantial. Chainalysis estimated that the platform processed approximately $20 billion worth of cryptocurrency from 2021 to 2025. Reported cryptocurrency investment fraud losses in the U.S. totaled $8.65 billion in 2025, an 89% increase from $4.57 billion in 2023.

[Key Article Summary]

- The U.S. Department of Justice's joint investigation team seized Xinbi Guarantee and froze over $52 million in cryptocurrency.

- Xinbi Guarantee is estimated to have processed approximately $20 billion worth of cryptocurrency from 2021 to 2025.

- Reported cryptocurrency investment fraud losses in the U.S. for 2025 totaled $8.65 billion, an 89% increase from 2023.

*Disclaimer: This article is for informational purposes only and is not responsible for investment losses based on its content. The information provided should be interpreted for informational purposes only.*