US Sanctions Xinbi and Seizes $52M in Crypto
US authorities have targeted Xinbi Guarantee, an alleged crypto scam marketplace and money-laundering network, in a coordinated enforcement action. The Justice Department restrained more than $52 million in crypto, including about $12 million held in two wallets used for vendor payments. It also pursued restrictions on 47 additional wallets and seized Telegram channels used to advertise money laundering, scam-investment websites and recruitment services for Southeast Asian scam compounds.
The Treasury Department’s Office of Foreign Assets Control designated Xinbi as a significant transnational criminal organisation. It also sanctioned Singapore-based SafeW Technology and Cambodia-based Anwen Technology, which authorities allege provided communications, payment and technical support. Anwen allegedly developed XinbiPay, also known as NewPay.
According to the Treasury, Xinbi processed more than $24 billion in crypto and fiat since about 2022. The platform was allegedly used by North Korean hackers and entities linked to the sanctioned Prince Group. Tether assisted the investigation.
The Xinbi sanctions add to UK measures announced on 26 March, which froze related assets and restricted the platform’s access to Britain’s financial and trade networks. The action highlights growing regulatory focus on the infrastructure supporting industrial-scale crypto scams, rather than only the individual perpetrators.
Neutral
The immediate market impact is likely neutral. The enforcement action targets Xinbi’s alleged criminal infrastructure and involves a relatively small amount of crypto compared with overall digital-asset market liquidity. The restrained funds are not described as large open-market sales, so the event is unlikely to create significant direct pressure on Bitcoin or major altcoins.
In the short term, traders may react cautiously to headlines about wallet seizures, sanctions and possible stablecoin restrictions. This could briefly increase risk aversion and draw attention to compliance risks for exchanges, payment providers and stablecoin issuers. However, similar actions against illicit crypto services have generally produced limited and temporary market-wide effects unless they involve a major exchange, a widely used protocol or forced liquidation of substantial holdings.
The longer-term effect is more significant for market structure. The Xinbi sanctions may encourage tighter know-your-customer controls, blockchain monitoring and restrictions on services that support scam networks. Such measures could reduce illicit transaction activity and improve institutional confidence, but they may also increase compliance costs and scrutiny for legitimate crypto businesses. Traders should monitor follow-up wallet movements, additional sanctions, stablecoin-related action and whether other jurisdictions coordinate with the US and UK. Unless those developments spread to major assets or trigger large liquidations, the news is more likely to affect sector reputation and regulatory expectations than overall price direction.