Scam Center Strike Force Conducts Seizures of Chinese-Run Illicit Scammer Marketplace, and Restrains $52 Million in Laundered Crypto Scammer Funds In One Day
CRYPTD interpretation — regulatory information, not legal advice
The DOJ announced coordinated actions targeting Xinbi, described as an illicit marketplace for scam services, and cryptocurrency funds linked to Southeast Asian fraud and scams. The actions included seizures, restraint of $52 million in allegedly laundered crypto scam funds, and assistance with a takedown in Madagascar.
What changes
The DOJ and Treasury took coordinated action against Xinbi and restrained $52 million in allegedly laundered cryptocurrency funds.
Who it affects
The action affects Xinbi, scam-service operators, and parties handling cryptocurrency linked to the alleged fraud.
Practical implications
- Parties handling implicated cryptocurrency may face seizure or restraint of funds.
- Scam-service marketplaces may face coordinated U.S. enforcement action.
U.S. Department of Justice
U.S. Attorney Jeanine Ferris Pirro, together with major federal law enforcement and interagency partners, announced actions taken by the Department of Justice’s Scam Center Strike Force to secure America against Southeast Asian cryptocurrency-related fraud and scams. The Strike Force and the Department of the Treasury took coordinated actions against Xinbi Guarantee (“Xinbi”), an illicit marketplace for scam services, and the Strike Force deployed to Madagascar to assist in the taking down of 13 Chinese-run scam compounds.
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