US authorities have escalated action against the Xinbi Guarantee marketplace after blockchain investigators linked it to tens of millions of dollars in stolen cryptocurrency laundered by actors tied to the Democratic People's Republic of Korea. According to Chainalysis, DPRK-linked groups used specialized vendors known as Black U to swap traceable stolen assets for stablecoins sourced from other illicit activity, obscuring the funds' origins.
The US Department of Justice announced on Sept. 9 that its Scam Center Strike Force seized two cryptocurrency wallets containing roughly $12 million and moved to restrain another 47 wallets suspected of money laundering through Xinbi and its vendor network. In total, the operation placed more than $52 million in crypto beyond the marketplace's reach. Tether assisted investigators and had separately frozen $39.3 million in USDT across 10 Tron addresses connected to Xinbi earlier in the week.
Court filings also authorized the seizure of Telegram channels used by Xinbi to advertise money laundering services, fraudulent investment website development, and recruitment for scam compounds in Southeast Asia. The marketplace operated an escrow system, holding funds until vendors delivered purchased services. The Office of Foreign Assets Control designated Xinbi as a significant transnational criminal organization and sanctioned technology providers SafeW Technology and Anwen Technology. Treasury data put transactions processed through Xinbi and associated platforms at more than $24 billion since around 2022.
Investigators said funds belonging to US victims were traced to vendors that advertised money laundering and posted cryptocurrency addresses in Xinbi's Telegram channels. OFAC said the platform was used by North Korean hackers and previously sanctioned entities, including companies linked to Cambodia's Prince Group. In a separate prior case, US prosecutors sought forfeiture of more than 127,000 Bitcoin connected to Prince Group chairman Chen Zhi and associates; Prince Group has denied the allegations.
The action follows earlier enforcement against similar guarantee marketplaces such as Huione Guarantee, and the UK sanctioned Xinbi in March 2026. The Scam Center Strike Force has now restrained approximately $938 million linked to scam money laundering operations, underlining a widening regulatory push against crypto-enabled cybercrime.
