Tether has frozen approximately $39.3 million in USDT held across cryptocurrency wallets linked to Xinbi Guarantee, according to blockchain-monitoring firm MistTrack, marking another significant disruption targeting the sprawling ecosystem of Telegram-based guarantee marketplaces. MistTrack reported on September 8 that 39,273,713 USDT had been frozen across 10 addresses on the TRON blockchain.
At least one of the identified addresses held more than $10 million. The analytics firm attributed the wallets to Xinbi through wallet labels, transaction patterns and connections with addresses previously identified as belonging to the platform’s merchants. Tether has not publicly confirmed the action or disclosed whether the freeze resulted from sanctions compliance, a law-enforcement request or another investigation. The wallet attribution therefore does not independently establish that every dollar frozen represents proceeds of crime.
Xinbi Has Processed Billions in Crypto
Xinbi Guarantee emerged around 2022 as a Chinese-language guarantee marketplace primarily operating through Telegram. Guarantee marketplaces function as intermediaries between buyers and sellers, providing escrow services and merchant deposits designed to establish trust between otherwise anonymous participants. Blockchain intelligence firms say those services have become important infrastructure for Southeast Asian cybercrime. TRM Labs estimates Xinbi has processed approximately $24.2 billion in total transaction volume since its establishment, including $12.1 billion of observed inflows since May 2025. Chainalysis uses a different methodology and estimates Xinbi processed more than $19.9 billion between 2021 and 2025.
Those figures represent platform-associated transaction volume, not an estimate that every transaction involved criminal proceeds. Investigators have nevertheless linked Xinbi’s infrastructure to money laundering, pig-butchering scams, stolen personal information, fake identification documents, unlicensed cryptocurrency trading and services supporting scam operations. The UK sanctioned Xinbi in March 2026, citing its role in providing services to Southeast Asian scam centres.
Stablecoin Controls Become Enforcement Tool
The latest freeze illustrates a distinctive feature of centralized stablecoins such as USDT. Although USDT moves across public blockchains, Tether retains the technical ability to freeze specific addresses, preventing tokens held in those wallets from being transferred. That capability has increasingly turned stablecoin issuers into important participants in sanctions and cryptocurrency enforcement. The Xinbi action follows previous restrictions involving wallets connected to Huione Guarantee, another major Chinese-language guarantee marketplace. Xinbi and Huione were both targeted by Telegram in May 2025 after investigations into their activities.
Elliptic estimated at the time that the two marketplaces had collectively facilitated more than $35 billion in stablecoin transactions. The disruption did not eliminate Xinbi. TRM subsequently found its daily inflows increased nearly 90% after the Telegram action as the marketplace rebuilt its presence. Xinbi also expanded beyond Telegram by promoting the SafeW messaging application and developing XinbiPay, its own cryptocurrency payment infrastructure. That resilience demonstrates the limitations of targeting individual communications platforms. Operators can create new accounts, migrate users and replace wallet infrastructure relatively quickly.
Freezing stablecoins attacks a different layer of that system by immobilizing funds directly. Yet the latest action affects only 10 identified addresses and does not establish that Xinbi’s broader network has been dismantled. The reason for the freeze also remains unclear without confirmation from Tether or authorities. What is visible onchain is the immediate result: nearly $39.3 million of USDT associated by blockchain investigators with one of the largest remaining guarantee marketplaces can no longer move from those addresses. For illicit networks heavily dependent on dollar-denominated stablecoins, that demonstrates both crypto’s usefulness for moving money globally and the significant control centralized issuers retain over those funds.