US dismantles alleged $24B Chinese cybercrime ring

The US announced a coordinated operation Wednesday to dismantle Xinbi Guarantee, a Chinese-language criminal organization accused of processing more than $24 billion in illegal transactions.

The Treasury Department characterized Xinbi Guarantee as a platform used by cybercriminals to operate a large online marketplace for fraud and money laundering. Since its establishment around 2022, the group allegedly processed billions in digital assets and fiat currency through a specialized "escrow" system that facilitated criminal services.

The Office of Foreign Assets Control (OFAC), the Treasury division responsible for economic sanctions, designated SafeW Technology in Singapore and Anwen Technology in Cambodia. The firms reportedly provided the encrypted messaging and the digital wallet infrastructure necessary for the group's coordination and fund movement.

Global takedown, seizures

The US "Scam Center Strike Force" revealed that it recently assisted authorities in Madagascar to dismantle 13 centers operated by Chinese syndicates. The operation resulted in nearly 400 arrests and the seizure of more than 3,200 electronic devices. Thirty Chinese leaders were repatriated following the raids.

Federal prosecutors also reported a financial recovery, restraining approximately $52 million in laundered cryptocurrency in a single day. The amount restrained by the task force stands at $938 million. The Justice Department expressed gratitude to Tether, a major issuer of digital stablecoins, for its proactive assistance in the investigation.

The operation also involved the court-authorized seizure of multiple Telegram channels used to host the illicit marketplace.

"If Chinese organized 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," said US Attorney for the District of Columbia Jeanine Pirro.

The crackdown complements sanctions issued by the United Kingdom against the same organization earlier this year.