{"id":13019,"date":"2026-09-09T18:19:26","date_gmt":"2026-09-09T18:19:26","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=13019"},"modified":"2026-09-09T18:19:26","modified_gmt":"2026-09-09T18:19:26","slug":"how-tethers-45-million-crackdown-drove-southeast-asian-scam-compounds-into-an-unfreezable-decentralized-stablecoin","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=13019","title":{"rendered":"How Tether’s $45 million crackdown drove Southeast Asian scam compounds into an ‘unfreezable’ decentralized stablecoin"},"content":{"rendered":"

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Tether is pursuing Xinbi Guarantee across its USDT payment network, freezing operational wallets as the sanctioned marketplace tries to keep transacting.<\/p>\n

Blockchain analytics firm Bitrace said on Sept. 9 that more than $45 million in USDT had been frozen across at least 22 operational addresses linked to Xinbi, including wallets used to receive, route, and withdraw funds.<\/p>\n

\"Xinbi's\"Xinbi's
Xinbi’s Tether USDT Impacted Addresses (Source: Bitrace)<\/figcaption><\/figure>\n

The action targets a network already under government scrutiny. The UK sanctioned Xinbi Guarantee in March, identifying it as a major Chinese-language crypto marketplace and money-laundering hub serving Southeast Asian scam compounds.<\/p>\n

Tether targeted Xinbi’s USDT infrastructure<\/h2>\n

The $45 million freeze reached beyond wallets simply holding Xinbi-linked funds. <\/p>\n

Bitrace said the targets included recently used deposit, intermediary, and withdrawal addresses, outgoing hot wallets operated by Xinbi payment service Xpay, and wallets belonging to third parties with close financial ties to the marketplace.<\/p>\n

That breadth suggests the action aimed to disrupt Xinbi\u2019s ability to move money, rather than only immobilizing assets already sitting in known addresses.<\/p>\n

Bitrace contrasted the operation with a 2024 action against Huione Group, when about $29.6 million was frozen in a single address while other operational wallets remained usable. In Xinbi\u2019s case, restrictions spread across the infrastructure used to receive deposits, route funds, and process withdrawals.<\/p>\n

Xinbi responded by activating new operational addresses, but those replacements provided only a brief escape.<\/p>\n

Bitrace said newly activated wallets were frozen again on the evening of Sept. 8, less than 12 hours after the initial action. One replacement business address moved about 1.8 million USDT before another restriction was imposed, leaving roughly 37,839 USDT stranded.<\/p>\n

Meanwhile, the enforcement perimeter also extended beyond wallets directly attributed to Xinbi.<\/p>\n

Bitrace said third-party operators with financial links to the marketplace were caught in the freezes, including one OTC operation that processed more than $72 million over the preceding year and another whose deposits through Xinbi totaled less than $850,000.<\/p>\n