DOJ Cracks Down on Xinbi Guarantee, Seizes $52.8 Million in Crypto Assets

The U.S. Department of Justice announced Wednesday that it had dismantled an online fraud operation known as Xinbi Guarantee, seizing two cryptocurrency wallets and freezing roughly $52.8 million in digital assets linked to the scheme.

Xinbi Guarantee operated primarily through a network of Telegram channels, where it marketed so‑called “guaranteed” returns on cryptocurrency investments. The channels functioned as storefronts for a broader illicit marketplace that promised investors protection against market volatility, a claim that investigators say was a front for a classic Ponzi‑style scam.

Law‑enforcement agents coordinated a multi‑agency effort to identify the digital wallets used by the operators, ultimately confiscating both and placing the funds under court control. The seized wallets contained the full $52.8 million that had been moved through the platform, effectively cutting off the financial lifeline of the enterprise.

The action fits within a growing pattern of DOJ initiatives targeting cryptocurrency fraud. Over the past few years, the department has pursued dozens of cases involving deceptive investment schemes, ransomware extortion, and money‑laundering operations that exploit the anonymity of blockchain transactions.

Investigators described Xinbi Guarantee as a “marketplace” that aggregated multiple scam services, allowing perpetrators to advertise fraudulent products, recruit victims, and move proceeds across a chain of crypto addresses. By leveraging Telegram’s encrypted messaging and the ease of creating new wallet addresses, the operators were able to evade detection for an extended period.

While the seizure does not guarantee immediate restitution for victims, the frozen assets provide a pool from which restitution could be distributed pending the outcome of criminal proceedings. Authorities indicated that additional individuals linked to the scheme remain under investigation and could face charges ranging from wire fraud to money‑laundering.

Legal experts anticipate that the case will reinforce the DOJ’s message to crypto‑based fraudsters: the anonymity offered by digital currencies does not shield illicit actors from federal prosecution. The department also signaled that it will continue to work with international partners to track cross‑border transactions, suggesting that further takedowns of similar operations are likely in the months ahead.