Tether said it assisted the U.S. Department of Justice in an operation that froze more than $52 million in digital assets linked to an alleged international fraud and money-laundering network. The company said the Justice Department formally recognized its cooperation in the case.
According to Tether, the action centered on Xinbi Guarantee, a Chinese-language online marketplace that U.S. authorities believe used Telegram to support fraud rings, money-laundering services, and investment scams involving digital assets.
Assets frozen in DOJ operation
Tether said the Justice Department recently froze more than $52 million in digital assets as part of the operation. The company described the freeze as the result of coordinated action against a cross-border organization accused of using crypto in illicit activity.
U.S. authorities seized about $12 million from two digital-asset wallets that they said Xinbi Guarantee used to collect payments from vendors. They also moved to freeze 47 additional wallets believed to be connected to money-laundering activity. Tether said the combined value of assets frozen in a single day surpassed $52 million.
Marketplace accused of enabling illicit services
The operation targeted Xinbi Guarantee, which U.S. authorities described as a Chinese-language online marketplace. Investigators believe the platform operated through Telegram and served as infrastructure for fraud operations and laundering services.
Authorities said the marketplace facilitated crypto-based money laundering and investment scams. The source article does not detail specific charges against individuals or provide further information on how long the alleged activity had been under investigation.
Tether highlights cooperation with authorities
Tether said it actively cooperated with the Justice Department during the investigation. The company presented the case as an example of how stablecoin issuers can work with law enforcement when wallets are identified as tied to suspected criminal activity.
Chief executive Paolo Ardoino said the use of digital assets does not allow criminal organizations to avoid law enforcement scrutiny. He also thanked the Justice Department for formally recognizing Tether’s role in the operation.
What comes next
Tether said it will continue working with law enforcement agencies around the world to prevent its platform from being used for illicit activity. The article does not say whether additional seizures, arrests, or court actions have been completed beyond the wallet freezes already described.
For now, the confirmed outcome is the freezing of more than $52 million in digital assets and the seizure of roughly $12 million from two wallets allegedly used by Xinbi Guarantee, along with action against 47 more wallets authorities believe are tied to laundering activity.
Source: en.bloomingbit.io