U.S. Attorney for the District of Columbia Jeanine Pirro announced sanctions Wednesday against Xinbi Guarantee, an online marketplace she described as “an illicit scamming marketplace” used by Chinese cybercriminals to defraud Americans. The Treasury Department simultaneously designated Xinbi a transnational criminal organization, cutting it off from the U.S. financial system.
Speaking at a press conference in Washington, Pirro said Xinbi operated primarily as a Chinese-language marketplace on Telegram, where scammers could purchase fake investment websites and money laundering services. Officials said the platform helped allow scams targeting Americans, many involving fraudulent cryptocurrency investment opportunities.
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According to the Secret Service, one Virginia resident reported losing $800,000 in a scheme routed through the Xinbi network. “Our team was able to follow the funds as they were laundered through the Xinbi Guarantee Network,” said Tara McLeese, a special agent with the Secret Service.
How Xinbi allegedly facilitated fraud at scale
Pirro said Xinbi functioned as a two-sided marketplace: vendors offered custom-built fake investment websites designed to mimic legitimate brokerages, and Xinbi held payments in escrow until vendors delivered their services. “It is a double protection to make sure that Americans are scammed properly and unwittingly,” Pirro said. “Xinbi sells tools of industrial fraud.”
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Prosecutors said Xinbi also recruited trafficking victims to work at scam compounds in Southeast Asia. The operation mirrors a broader pattern of cybercrime that U.S. authorities have been targeting, including a recent FBI seizure of $8 billion in cryptocurrency tied to scam compounds across multiple continents.
The Treasury’s designation prohibits Americans from doing business with Xinbi and requires any blocked assets to be reported to the Office of Foreign Assets Control (OFAC). A federal court in Washington, D.C., authorized the seizure of Telegram channels used by the group on Monday, temporarily cutting off its ability to operate.
Law enforcement actions and limits
Pirro said her Scam Center Strike Force restrained $52 million in cryptocurrency held in digital wallets across the Xinbi network. Separately, she announced that U.S. officials recently assisted Madagascar authorities in raiding 13 scam centers allegedly run by Chinese organized crime groups. About 500 people were arrested, and 30 Chinese leaders of the compounds were repatriated to China.
To date, the U.S. government says it has restrained $938 million linked to cryptocurrency scam schemes. President Donald Trump has been briefed on the operations, according to Pirro.
Asked whether Xinbi could simply relocate to another platform, Pirro acknowledged it would be “very easy” for the group to re-establish itself. “Old crimes are being committed in new ways,” she said. “They’ve got this figured out, and it took us a while to understand where it was coming from, who was doing it, how they were doing it. And now that we understand that we will keep pace, and we will beat them.”
What consumers should watch for
Officials at the press conference repeatedly warned Americans to be wary of unsolicited investment offers on social media or messaging platforms. “If you know someone that thinks they’ve got an opportunity that’s too good to be true, or that they’ve been contacted by someone who’s got the in on cryptocurrency,” Pirro said, “You’ve got to tell them to stop. Whether it started on a mistaken phone call or WhatsApp or any of the other social media websites. A text, a wrong number. Do not send a dollar. Do not send a penny.”
The action against Xinbi follows a broader crackdown on scam compounds and cryptocurrency fraud, including the FBI’s record-setting $8 billion seizure and the recent ban on crypto ATMs in Minnesota after a surge in scams. For Americans, the key takeaway is that investment opportunities promoted by strangers online, especially those demanding cryptocurrency, carry a high risk of being fraudulent.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are volatile and subject to fraud; readers should exercise caution and conduct independent research before making any investment decisions.
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