Scammers Just Lost $52M in One Day as US Strike Force Hits Chinese-Run Crypto Fraud Networks

A US crackdown on crypto-linked scam networks has restrained more than $52M in digital assets, as federal authorities targeted an alleged Chinese-language marketplace serving fraud operators. The latest operation brings the task force's total restrained cryptocurrency to approximately $938M since its November 2025 launch.

The operation targeted Xinbi Guarantee, an alleged Chinese-language marketplace that authorities say connected scam operators with vendors offering custom investment-scam websites, money-laundering services, and recruitment for scam compounds in Southeast Asia.

US Attorney for the District of Columbia Jeanine Ferris Pirro, who leads the Scam Centre Strike Force, warned that the threat extends beyond organised crime: 'If Chinese organised crime can buy a custom website and a money laundering service the way you order takeout, then every American with a retirement account is in the blast radius.' Pirro said the task force would continue targeting the networks behind the scams.

Telegram Marketplace Lands in Crosshairs

A seizure warrant authorised by the US District Court for the District of Columbia on 7 September was later unsealed, alleging that Xinbi operated through Telegram, where vendors marketed services to scam-centre operators. The Strike Force seized two Xinbi-linked crypto wallets containing about $12M combined.

Investigators also sought to restrain 47 other wallets believed to be tied to money laundering across the network. The Justice Department thanked Tether for its proactive assistance in the investigation.

Treasury Delivers Another Blow

The US Treasury Department's Office of Foreign Assets Control also designated Xinbi as a significant transnational criminal organisation. It separately designated SafeW Technology and Anwen Technology for providing financial, material, or technological support to Xinbi. Under the sanctions, property and interests in property belonging to the designated entities that are in the United States or controlled by US persons are blocked and must be reported to OFAC.

Tara McLeese, Special Agent in Charge of the US Secret Service's Washington Field Office, said investigators had followed stolen money through the network. 'After scamming money from hardworking Americans, criminals operating overseas laundered it through the Xinbi Guarantee network, which operated under the false assumption that they were out of the reach of US law enforcement.' She added, 'While the methods of fraud may change, our resolve does not.'

13 Scam Compounds Raided in Madagascar

The crackdown went beyond crypto wallets, reaching 13 scam compounds that authorities said were operated by Chinese organised crime syndicates in Madagascar. The Strike Force deployed a team to Madagascar for two weeks to assist local authorities in taking down 13 Chinese-run scam compounds.

The team helped process more than 3,200 electronic devices and opened its own investigations based on interviews with nearly 400 arrestees. The DOJ said approximately 30 of the arrestees were Chinese leaders of the scam compounds, who were later repatriated to China by the Chinese government.

US Attorney Michael J. Heyman highlighted the global scope of the operation. 'Transnational criminal organisations don't care about borders, and the Department of Justice won't either.'

Crypto Investment Fraud Keeps Surging

The crackdown comes as cryptocurrency investment fraud continues to rack up massive losses. According to FBI Internet Crime Complaint Centre data cited by the Justice Department, reported losses from cryptocurrency investment fraud rose from $4.57B in 2023 to $8.65B in 2025, an 89% increase. The FBI and DOJ have warned that the true losses are likely higher, as many victims never report being defrauded.

Launched in November 2025, the Scam Centre Strike Force brings together the Justice Department, FBI, Secret Service, and other federal agencies. Its latest operation signals a broader crackdown. Authorities are moving beyond individual scam sites and crypto wallets to target the alleged infrastructure supporting wider scam networks.