TL;DR
- Tether assisted the U.S. Department of Justice in restraining more than $52 million in cryptocurrency linked to Xinbi Guarantee, a network accused of supporting scam centers and organized crime.
- Authorities seized two wallets containing about $12 million and sought restraints on 47 others.
- The case shows how blockchain transparency and cooperation between crypto firms and law enforcement can help trace and recover illicit funds.
Tether has assisted law enforcement agencies in hundreds of investigations involving illicit cryptocurrency activity. According to the company, its cooperation has contributed to the freezing of more than $5 billion in assets linked to suspected criminal activity worldwide.
The DOJ’s Scam Center Strike Force said the funds were restrained in a coordinated action targeting Xinbi Guarantee, a Chinese-language network that allegedly connected scam operators with vendors offering money laundering services, fraudulent investment websites and other criminal support.
Investigators said Xinbi Guarantee operated primarily through Telegram, where it allegedly connected scam groups with service providers supporting large-scale fraud operations. Authorities also traced cryptocurrency belonging to U.S. victims to vendors associated with the network.
The enforcement action included the seizure of two cryptocurrency wallets used to collect vendor payments. Those wallets held approximately $12 million, while authorities also sought to restrain 47 additional wallets believed to be connected to money laundering activity. Together, the measures resulted in more than $52 million in cryptocurrency being restrained.
Tether Expands Law Enforcement Cooperation
Tether said it has worked with more than 340 law enforcement agencies across 67 countries, supporting over 2,800 cases globally. More than 1,600 of those investigations involved U.S. authorities, according to the company.
Tether also reported that its cooperation has contributed to the freezing of more than $5 billion in assets associated with illicit activity, including over $2.5 billion through coordination with U.S. authorities. The figures illustrate how blockchain-based assets can provide transaction trails that investigators can follow across wallets and other crypto infrastructure.
Recent cases have included approximately $225 million in USD₮ connected to an international human trafficking and romance scam operation, nearly $61 million associated with an alleged cryptocurrency investment fraud scheme, and more than $344 million frozen through cooperation with U.S. authorities and the Office of Foreign Assets Control.
Blockchain Transparency Supports Enforcement
Tether said it continues cooperating with the DOJ, FBI, U.S. Secret Service and other agencies to address criminal misuse of USD₮ and support asset recovery. From a broader crypto perspective, these investigations demonstrate that stablecoins operating on public blockchains can provide useful forensic information when authorities and industry participants have the tools to analyze transactions.
Tether has also expanded its technology work beyond stablecoins. On September 2, its AI Research division released open-source translation models designed to operate directly on consumer devices, including systems covering African and European languages.
