Tether’s Action Against Illicit Cryptocurrency Operations
In a significant move against illicit cryptocurrency operations, Tether has halted approximately $39.3 million worth of USDT across ten TRON addresses tied to Xinbi Guarantee. This marketplace, which has been scrutinized for its role in facilitating expansive crypto transactions, primarily caters to a Chinese-speaking audience.
The action was initially highlighted by MistTrack, a blockchain tracing service developed by SlowMist, which noted that Tether seized around 39,273,713 USDT linked to Xinbi Guarantee, a platform described as one of Southeast Asia’s largest illicit crypto marketplaces.
Distribution of Seized Funds
MistTrack’s analysis revealed that the seized funds were unevenly distributed across the ten frozen addresses. The largest among them held around 10.78 million USDT, while several others had balances of approximately 8 million USDT each. Notably, some addresses only retained minimal amounts, like 1 USDT.
Analysis indicated direct connections between the wallet, starting with the identifier TWPma8x, and Xinbi Guarantee operations. This wallet received substantial transfers from various “Guarantee Merchant” wallets, leading to further transactions within the ecosystem.
Ongoing Efforts Against Unauthorized Escrow Services
While Tether has not provided explicit reasons for these targeted seizures, the freeze aligns with an ongoing effort to clamp down on unauthorized escrow services that often utilize messaging platforms like Telegram for operations. This follows a previous freeze involving funds associated with Huione Guarantee, another Telegram-based escrow service.
In a broader context, Tether has enacted multiple freezes related to USDT transactions. In mid-2025, they blocked over $72 million after investigations traced significant funds linked to potential illicit activities. Reports also emerged linking some frozen funds to terrorist organizations, illustrating the company’s ongoing vigilance against crime facilitated through cryptocurrencies.
The Rise of Xinbi Guarantee
The establishment of Xinbi Guarantee can be traced back to its emergence on Telegram in 2022, and by 2025, it reportedly had facilitated around $24.2 billion in transactions. Industry analysis by TRM Labs suggests that Xinbi has been linked to various criminal enterprises, including scams and money laundering activities. The platform’s user base exploded from 119,000 in August 2024 to 233,000 by early 2025, dramatically increasing its criminal traffic.
Resilience of Illicit Marketplaces
Researchers observed that even after law enforcement actions to dismantle their operations, these marketplaces, including Xinbi and its competitors, would rapidly adapt and relocate their activities to evade enforcement action. For instance, after Telegram’s crackdown on their channels, Xinbi quickly resumed operations, branching out to platforms like SafeW and introducing a new crypto wallet solution called NewPay.
Despite attempted restrictions, Xinbi’s daily transaction inflows apparently doubled post-crackdown, indicating the persistent demand and operational resilience of such marketplaces. Meanwhile, Tether’s historical actions against these platforms reflect a significant push towards stabilizing the regulatory framework surrounding cryptocurrency transactions and limiting the platforms involved in illicit activities such as money laundering and fraud.
