US Sanctions Fraud-Linked Marketplace: Up to $24 Billion in Transactions
The U.S. Treasury has sanctioned two technology companies linked to Xinbi Guarantee, which is associated with crypto-linked fraud and illicit financial activities.
The U.S. Department of the Treasury has added Xinbi Guarantee, an online marketplace allegedly used by Chinese cybercriminals, to its sanctions list. The Treasury’s Office of Foreign Assets Control (OFAC) stated that the platform assisted fraud hubs in purchasing necessary products and facilitated money movements linked to criminal activities.
According to the agency’s data, up to $24 billion in transactions have been conducted through the platform since Xinbi began operations in 2022. A significant portion of this amount was reported to be linked to cryptocurrencies. It was stated that Xinbi supports money laundering networks, is used by North Korean hackers, and is also connected to Prince Group, which was previously the target of similar Treasury sanctions.
Sanctions Extended to SafeW Technology and Anwen Technology
It was reported that after law enforcement and technology companies intensified their tracking, Xinbi began moving its commercial and money laundering activities last year to an encrypted messaging application developed by Singapore-based SafeW Technology.
The Treasury also included Cambodia-based Anwen Technology in the scope of the sanctions; the company reportedly developed the XinbiPay wallet application. Thus, the decision targeted not only the main marketplace but also the linked infrastructures used by Xinbi for communication and money transfers.
The sanctions aim to block Xinbi Guarantee, SafeW Technology, and Anwen Technology from conducting financial transactions with U.S. persons and companies. This step effectively severs the targeted entities’ connection to the U.S. financial system.
U.S. Treasury Secretary Scott Bessent stated that fraud hubs in Southeast Asia steal billions of dollars from Americans every year. While working alongside the newly established Scam Center Strike Force, the Treasury had previously targeted Prince Group and Huione Group. The UK Foreign Office also imposed sanctions on Xinbi in March.