U.S. Disrupts Xinbi Guarantee Scam Marketplace, Freezes $52.8 Million in Crypto

What’s new: The U.S. Department of Justice has disrupted the Xinbi Guarantee scam marketplace, seizing two cryptocurrency wallets and freezing approximately $52.8 million in Tether’s USDT stablecoin. This operation is part of a broader initiative targeting scam centers linked to Chinese organized crime, resulting in the takedown of 13 scam compounds in Madagascar. The total amount restrained by the Scam Center Strike Force now stands at around $938 million.

Who’s affected

Victims of scams facilitated by the Xinbi Guarantee marketplace, primarily American citizens, are directly affected. Additionally, the marketplace’s operations have implications for cryptocurrency users and platforms involved in illicit activities.

What to do

• Monitor cryptocurrency transactions for any suspicious activities linked to known scam marketplaces.
• Educate users about the risks associated with engaging in transactions with unverified platforms.
• Implement enhanced security measures to protect against potential fraud and scams targeting your organization.

Sources

• The Hacker News