The Treasury Department has sanctioned a China-linked online marketplace that federal officials say helped criminal networks run cyber scams, launder money and target Americans.

The Office of Foreign Assets Control designated Xinbi Guarantee as a significant transnational criminal organization on Wednesday. Treasury said the Chinese-language platform has processed more than $24 billion in digital assets and fiat currency since it began operating around 2022.

The sanctions were paired with a Justice Department operation that restrained more than $52 million in cryptocurrency connected to Xinbi and its network of vendors.

The announcement drew attention after a clip of Treasury Secretary Scott Bessent’s statement circulated online:

According to the U.S. Department of the Treasury, Xinbi functioned as a central marketplace where scam-center operators could obtain financial services, technology and other support for criminal activity.

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Treasury said the platform provided escrow services to scam operators, money-laundering networks and cybercrime syndicates. Its users allegedly included entities already under U.S. sanctions, as well as hackers connected to North Korea.

The department said some cybercriminals moved activity to Xinbi after earlier U.S. action against Huione Pay, another financial-services network identified as a primary money-laundering concern.

Treasury’s designation also followed sanctions imposed on Xinbi by the United Kingdom in March. The U.S. action added financial restrictions while the Justice Department moved against the platform’s communications infrastructure and cryptocurrency wallets.

OFAC also sanctioned Singapore-based SafeW Technology Co. and Cambodia-based Anwen Technology Co.

Treasury said the two companies supported Xinbi’s core operations by providing encrypted communications and cryptocurrency payment services.

Bessent said Southeast Asian scam centers steal billions of dollars from American victims each year. He said the administration would continue using Treasury authorities to disrupt the networks behind those operations.

The move was carried out under an executive order signed by President Trump in March directing federal agencies to intensify efforts against foreign-backed cybercrime, fraud and predatory schemes targeting Americans.

The Justice Department said a federal court authorized the seizure of Telegram channels that hosted the alleged marketplace. Investigators also seized two cryptocurrency wallets holding about $12 million and sought restraint of 47 additional wallets believed to be tied to money laundering on the network.

In total, more than $52 million was restrained in the coordinated operation. The Justice Department said that brought the Scam Center Strike Force’s cumulative restrained-funds total to approximately $938 million.

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The government’s allegations describe Xinbi as an illicit service hub operating through Telegram. Vendors allegedly advertised custom investment-scam websites, money-laundering services and recruitment connected to scam compounds in Southeast Asia.

Xinbi allegedly held customer funds in escrow until vendors completed the purchased services. Federal investigators said money taken from U.S. victims was traced to vendors advertising laundering services and posting cryptocurrency wallet addresses through the platform.

The sanctions block property and interests in property belonging to the three designated entities when those assets are in the United States or under the possession or control of U.S. persons. U.S. persons are generally prohibited from transactions involving the sanctioned entities unless authorized by OFAC.

The Justice Department said the same operation extended beyond Xinbi. A Scam Center Strike Force team deployed to Madagascar to assist authorities in dismantling 13 Chinese-run scam compounds.

Nearly 400 people were arrested there, according to the department.

Federal officials said the broader investigation remains active. Anyone who believes they were targeted by an online investment or cryptocurrency scam can file a report with the FBI’s Internet Crime Complaint Center.

This is a Guest Post from our friends over at WLTReport. View the original article here.

 

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