The Scam Center Strike Force (SCSF) of the United States Department of Justice has taken a series of enforcement actions against the Chinese online trading platform “Xinbi Guarantee.” The platform was seized, and approximately $52 million in cryptocurrency related to the case was frozen in a single-day operation. “Xinbi Guarantee” has been accused of being a large illegal online market providing fraudulent services. Meanwhile, the U.S. Department of the Treasury has also sanctioned “Xinbi Guarantee.”
According to a press release from the Federal Prosecutor’s Office in the District of Columbia, “Xinbi Guarantee” is a Chinese illegal market platform operated on Telegram, where merchants promote their services to operators of scam centers. The Telegram channel primarily uses Chinese, and businesses post various services they can provide, including creating customized fraudulent investment websites, “cleaning” funds obtained through telecommunications fraud from victims, and recruiting human trafficking victims to engage in fraudulent activities in Southeast Asian scam parks.
Once scammers “purchase” a service from a service provider, “Xinbi Guarantee,” as the platform operator, holds the payment to be made to the service provider until the service is completed, providing protection to scammers to ensure that the service provider fulfills their obligations.
On September 7, 2026, the Federal District Court for the District of Columbia authorized the seizure of the Telegram channel hosting the illegal trading platform.
In multiple cases, law enforcement officers tracked funds from U.S. victims to specific service providers. These service providers had advertised money laundering services on the Telegram channel and disclosed cryptocurrency wallet addresses for receiving payments on Telegram.
As per the seizure order, law enforcement agencies froze approximately $52 million in cryptocurrency related to fraudulent money laundering activities in a single-day operation. The total amount of related funds frozen by SCSF has now reached around $938 million.
“If organized crime groups in China can easily purchase customized websites and money laundering services like ordering takeout, then every American with a retirement account is at risk of being victimized,” said U.S. Federal Prosecutor Pirro. “My special task force will continue to dismantle Chinese organized crime and their accomplices, protecting the interests of ordinary Americans.”
Pirro also announced that SCSF would expand its operations globally to combat scam parks. A team has been dispatched to Madagascar to assist in dismantling 13 scam centers operated by Chinese organized crime groups, with the team also handling over 3,200 electronic devices.
Based on interrogation of nearly 400 arrested individuals, SCSF has initiated its own investigation. At least 30 of these individuals are Chinese nationals who were ringleaders of these scam parks.
As part of further coordinated efforts, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) implemented sanctions against “Xinbi Guarantee” on Wednesday, designating it as a major transnational criminal organization and identifying multiple cryptocurrency wallets associated with “Xinbi Guarantee.” OFAC also sanctioned two entities supporting the core operations of “Xinbi Guarantee.”
“After defrauding hard-earned money from American citizens, overseas criminals used the ‘Xinbi Guarantee’ network for money laundering, mistakenly believing that they could evade scrutiny by U.S. law enforcement,” said Tara McLeese, Special Agent in Charge of the Washington Field Office of the Secret Service. “Our agents and investigative analysts are dedicated to tracking stolen funds and exposing the scale of this criminal network, demonstrating our unwavering commitment despite the evolving fraud tactics.”
“Transnational criminal organizations disregard borders, and the U.S. Department of Justice is equally unrestricted by borders,” said Michael J. Heyman, Federal Prosecutor for the District of Alaska. “We are proud to be part of SCSF and are committed to eradicating these international fraud networks, seeking justice for fraud victims across the country.”