U.S. Disrupts Xinbi Guarantee Scam Marketplace, Freezes $52.8 Million in Crypto
Summary: The U.S. Department of Justice announced coordinated actions against the Xinbi Guarantee scam marketplace, seizing its Telegram channels, confiscating two cryptocurrency wallets holding about $12 million, and freezing $52.8 million in cryptocurrency across 52 wallets tied to Xinbi and its merchant network. Blockchain analytics firm Elliptic, working with the U.S. Secret Service, identified the wallets holding the $52.8 million in Tether USDT, and the Treasury Department's OFAC sanctioned the Chinese-language marketplace, which Elliptic says has processed $30 billion in transactions since its inception around 2022.
What you should know: Xinbi has already responded to the freeze by converting roughly $2.8 million of its remaining USDT into USDD, a stablecoin with no central issuer able to freeze wallets, showing that takedowns push these marketplaces toward assets your controls cannot reach. The Scam Center Strike Force's total restrained funds now stand at approximately $938 million, and the same operation took down 13 scam compounds in Madagascar and opened investigations based on interviews with nearly 400 arrestees.
Read the original at The Hacker News ↗
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