DOJ Tether enforcement helps dismantle $52M crypto scam network

The U.S. Department of Justice has publicly credited Tether for helping investigators dismantle a sprawling cryptocurrency scam network, marking one of the clearest examples yet of a stablecoin issuer working hand-in-hand with federal law enforcement. The case, tied to a Chinese-language marketplace called Xinbi Guarantee, resulted in more than $52 million in cryptocurrency being restrained in a single coordinated action — and it’s the DOJ’s public acknowledgment of Tether’s role that has drawn attention to how deeply stablecoin issuers are now embedded in financial crime investigations. This DOJ Tether enforcement effort shows how closely the world’s largest stablecoin issuer is now working with federal investigators to track and freeze illicit crypto funds.

Key takeaways

• The DOJ’s Scam Center Strike Force restrained over $52 million in cryptocurrency tied to Xinbi Guarantee, a marketplace accused of servicing scam centers worldwide.
• Two Xinbi-linked wallets holding roughly $12 million were seized, while 47 additional wallets tied to money laundering were targeted for restraint.
• The DOJ specifically thanked Tether for its proactive assistance in the investigation.
• Tether has now worked with more than 340 law enforcement agencies across 67 countries on over 2,800 cases, helping freeze more than $5 billion in illicit assets globally.
• CEO Paolo Ardoino said the company’s stablecoin infrastructure gives law enforcement “powerful tools” to disrupt illicit financial activity.

DOJ Restrains Over $52 Million in Cryptocurrency Linked to Xinbi Guarantee Scam Network

The DOJ’s Scam Center Strike Force restrained more than $52 million in cryptocurrency in a single day, striking at Xinbi Guarantee, a platform authorities describe as a hub connecting scam operators and organized criminal groups. The action targeted a network that allegedly operated with little regard for borders, moving stolen funds through digital wallets that investigators say were designed to obscure their origin.

Alleged Scam Operations Facilitated by Xinbi Guarantee

According to the DOJ, Xinbi ran largely through Telegram, where it connected scam operators with vendors offering a menu of criminal services. Those services reportedly included money laundering, fraudulent investment websites, and — in a particularly troubling detail — the recruitment of trafficking victims forced to work inside scam compounds. Investigators say they traced funds belonging to U.S. victims directly to vendors operating through this network, giving the case a domestic dimension that likely accelerated the federal response.

Seizure of Wallets Holding $12 Million and Additional Restraints

As part of the operation, authorities seized two cryptocurrency wallets, containing approximately $12 million, that Xinbi allegedly used to collect vendor payments. On top of that, investigators sought the restraint of 47 additional wallets believed to be linked to money laundering activity tied to the network. Combined, these measures pushed the total amount restrained past the $52 million mark reported by the DOJ.

Tether’s Acknowledged Assistance in the Enforcement Action

The DOJ didn’t just announce the seizures — it went out of its way to thank Tether for helping make them possible. That kind of public recognition from a federal agency is notable, since it signals that the company’s cooperation went beyond passive compliance and into active investigative support.

DOJ’s Recognition of Tether’s Role

In announcing the Xinbi action, the DOJ specifically credited Tether’s proactive assistance in the investigation. For a company whose stablecoin, USD₮, moves billions of dollars daily across global markets, this kind of acknowledgment carries weight: it suggests federal investigators increasingly view Tether as a cooperative partner rather than a bystander when illicit funds flow through its network.

Tether CEO Paolo Ardoino’s Statement on Law Enforcement Collaboration

Paolo Ardoino, Tether’s CEO, framed the case as proof that digital assets no longer offer criminals a safe haven. “By now, criminal organizations should understand that using digital assets does not put them beyond the reach of the law,” Ardoino said. He added that “Tether has consistently demonstrated that the stablecoin infrastructure can give law enforcement powerful tools to identify, disrupt, and stop illicit financial activity.” Ardoino also thanked the DOJ for recognizing the company’s role and said Tether would “continue to proudly work with agencies around the world to stop bad actors from misusing USD₮.”

Tether’s Ongoing Partnerships with U.S. Law Enforcement Agencies

This case is not an isolated event — it fits a pattern of sustained cooperation between Tether and federal agencies that has grown substantially over the past several years. That pattern matters because it shapes how regulators, investors, and rival stablecoin issuers view the credibility of the broader digital asset industry.

Collaborations with DOJ, FBI, and U.S. Secret Service

Tether says it continues to work directly with the DOJ, the FBI, the U.S. Secret Service, and other authorities around the world to prevent the misuse of USD₮. Among the enforcement actions the company has backed through its recent work with U.S. authorities are cases involving roughly $225 million USD₮ connected to an international human trafficking and romance scam syndicate, nearly $61 million USD₮ associated with a sprawling investment fraud operation, and over $344 million USD₮ that was frozen through joint efforts with the Office of Foreign Assets Control (OFAC) and U.S. law enforcement agencies.

Track Record of Supporting Global Law Enforcement

Beyond this particular case, Tether’s overall figures show why such enforcement partnerships carry significance, given that the company has worked alongside over 340 law enforcement agencies spanning 67 countries and has contributed to more than 2,800 cases worldwide, of which upwards of 1,600 involved U.S. authorities. Those partnerships have contributed to freezing more than $5 billion in assets tied to illicit activity worldwide, with over $2.5 billion of that total frozen in cooperation with U.S. authorities alone.

Why does this matter beyond the headline number? Because it shows regulators a working model for how stablecoin infrastructure can be turned into an investigative asset rather than a liability. As scrutiny of digital assets intensifies globally, issuers that can demonstrate real, repeated cooperation with agencies like the DOJ, FBI, and Secret Service may find themselves better positioned as regulatory frameworks for stablecoins continue to take shape. For scam networks like Xinbi Guarantee, the message from this case is blunt: moving stolen money through crypto wallets no longer guarantees anonymity, and the same rails that once shielded illicit activity are increasingly being used to expose it.

FAQ

What enforcement action did the DOJ take involving Xinbi Guarantee?

The DOJ restrained over $52 million in cryptocurrency linked to Xinbi Guarantee, a network accused of facilitating scam and money laundering operations.

How did Tether assist in the DOJ’s enforcement action?

Tether provided proactive assistance that helped investigators identify and restrain illicit cryptocurrency funds associated with the scam network.

What is Tether’s relationship with U.S. law enforcement agencies?

Tether collaborates with over 340 law enforcement agencies worldwide, including the DOJ, FBI, and U.S. Secret Service, to prevent misuse of its stablecoin USD₮.

What did Tether’s CEO say about their role in combating illicit financial activity?

Paolo Ardoino stated that Tether’s stablecoin infrastructure offers law enforcement powerful tools to identify, disrupt, and stop illicit financial activity.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.