On September 8, the U.S. Secret Service froze $52.8 million related to the fraud market Xinbi Guarantee involving Telegram. On the same day, the U.S. Treasury Department also listed it as a transnational criminal organization. Law enforcement authorities stated that these funds are associated with fraud activities worldwide.

How law enforcement agencies track funds

Elliptic indicates that over the past few years, there has been continuous tracking of Xinbi and its wallet network. The intelligence provided by this company directly helped law enforcement agencies to locate and freeze relevant assets. Subsequently, the Department of Justice lifted some of the seizure orders, revealing that approximately 12 million US dollars from two of those wallets were officially seized, while the remaining funds are still in a frozen state.

The scale of the fraud market continues to expand.

According to Elliptic, since 2022, Xinbi and its merchants have processed at least $24 billion in transactions, second only to the previously closed Huione Guarantee. The latter processed approximately $31 billion in total before being taken off the market by Telegram in May 2025.

Xinbi Redirect to USDD

Xinbi subsequently issued a statement, calling the freeze action "arbitrary" and stating that it would compensate customers. On-chain data shows that the platform has converted approximately $2.8 million of USDT into USDD, in an attempt to reduce its dependence on freezeable stablecoins. However, part of the reserves of USDD are still backed by USDT.

Additional information:The U.S. Department of Justice stated that since its “Scam Center Strike Force” initiative was launched in November 2025, it has seized approximately $938 million in fraudulent crypto assets.