Tether has frozen 39,273,713 USDT held across 10 TRON addresses linked to Xinbi Guarantee, according to blockchain-monitoring firm MistTrack. The freeze was recorded on Sept. 8 and affects wallets associated with a Telegram-based escrow network that has drawn scrutiny over alleged illicit crypto activity.
The move appears to extend a broader clampdown on wallets tied to Telegram-based marketplace and escrow services. It follows an earlier Tether freeze involving addresses connected to Huione Guarantee, another service operating in a similar model.
Freeze targets 10 TRON addresses
MistTrack said the blacklisted addresses collectively held $39.27 million in USDT at the time of the action. By placing those wallets on its blacklist, Tether can stop the tokens in them from being transferred through the USDT smart contract.
The affected addresses were linked by investigators to Xinbi Guarantee. While Tether has the technical ability to freeze tokens at specific blockchain addresses, the company had not publicly explained this latest action or confirmed any law-enforcement request as of the source report's publication.
Xinbi's role and allegations around the network
Xinbi Guarantee emerged around 2022 as a Telegram-based marketplace, according to the report. It reportedly connected merchants with services that have been associated with scams and money laundering.
The wallets tied to the network have been described by investigators as part of a system accused of facilitating illicit cryptocurrency flows. If those addresses were being used in Xinbi's escrow operations, the blacklist could limit how funds move through that channel.
Billions in estimated USDT activity
Blockchain investigators have estimated that wallets linked to Xinbi processed billions of dollars in USDT. Some estimates cited in the report put the total near $24 billion, with most of that activity taking place on the TRON network.
That scale helps explain why enforcement actions against a relatively small set of addresses can still draw attention. Even so, the report did not say the newly frozen wallets represented the full extent of Xinbi-linked holdings or activity.
Sanctions and likely next steps
The UK sanctioned Xinbi in March over alleged connections to scam compounds and human rights abuses. Reports cited in the source article said the platform continued operating through alternative channels despite that action.
Tether's blacklist function underscores the centralized controls built into USDT, allowing the issuer to immobilize tokens at selected addresses. The immediate confirmed development is the freeze itself; whether it leads to further enforcement, additional wallet blacklisting, or a shift by operators to other wallets or networks remained unclear at the time of publication.
Source: Coin Edition