Ethereum

    US hit on $24 billion crypto black market sends rival money launderers running for exits

    行政By No Comments5 Mins Read

    US authorities have escalated their crackdown on Xinbi Guarantee, restraining more than $52 million in crypto and seizing key infrastructure.

    A federal court authorized the seizure of Telegram channels tied to the Chinese-language marketplace on Sept. 7, while investigators seized two wallets holding about $12 million and sought restraint of 47 additional addresses linked to vendors and suspected money laundering.

    The Treasury Department simultaneously designated Xinbi a significant transnational criminal organization and sanctioned SafeW Technology and Anwen Technology, companies tied to messaging and payment infrastructure used by the marketplace.

    The measures extend beyond individual wallets. Xinbi had begun shifting merchant coordination and alleged laundering activity to the encrypted SafeW application around June 2025 and introduced XinbiPay, also known as NewPay, as scrutiny of its operations intensified.

    Infographic showing U.S. action against Xinbi across seized Telegram channels, two seized wallets holding approximately $12 million, restraint sought for 47 more wallets, OFAC designations and more than $24 billion in marketplace throughput.Infographic showing U.S. action against Xinbi across seized Telegram channels, two seized wallets holding approximately $12 million, restraint sought for 47 more wallets, OFAC designations and more than $24 billion in marketplace throughput.

    By sanctioning those service providers alongside wallet seizures, US authorities targeted both the movement of funds and the infrastructure used to organize transactions.

    The action follows earlier pressure on Xinbi’s USDT network, including freezes affecting operational wallets used to receive, route and withdraw stablecoins. That had already pushed the marketplace to explore alternatives, including greater use of USDD.

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    Meanwhile, this US action follows sanctions imposed by the UK and comes as governments increasingly focus on the service providers that let stolen crypto and scam proceeds move between wallets, stablecoins, and cash-out networks.

    North Korean hackers reveal Xinbi’s role in crypto laundering

    Xinbi had become more than a marketplace for Southeast Asian scam operators, providing financial infrastructure that connects cyber theft, fraud proceeds, and underground cash-out networks.

    Blockchain analysis firm Chainalysis said North Korea-linked threat actors moved tens of millions of dollars in stolen cryptocurrency through vendors operating on the platform.

    Among the services available were specialist operators known as “Black U” launderers, which help criminals break the direct on-chain link between stolen assets and the money they ultimately withdraw.

    The vendors accept cryptocurrency traceable to hacks and replace it with stablecoins sourced from separate illicit revenue streams, including pig-butchering and romance scams. That lets stolen tokens disappear into a much larger pool of criminal flows, while hackers receive different assets they can move through unlicensed over-the-counter desks and convert into fiat.

    The model made Xinbi useful to actors trying to evade blockchain tracing without relying solely on conventional mixers or bridges.