Secret Service Seizes $52.8M in Crypto from Telegram Scam Bazaar

Secret Service freezes crypto — The U.S. Secret Service has frozen $52.8 million in cryptocurrency linked to a sprawling Telegram-based marketplace used to facilitate global scams, according to a report from blockchain analytics firm Elliptic.

The funds were traced to the Xinbi exchange, which Elliptic claims processed over $24 billion for the illicit marketplace. The operation, which the U.S. Treasury Department sanctioned earlier this year, served as a hub where criminals could purchase tools and services for investment fraud, romance scams, and other schemes. The Secret Service’s seizure represents one of the largest single freezes of crypto assets tied to such a platform.

Elliptic’s investigation detailed how the marketplace operated on Telegram, offering scam kits, laundering services, and data to fraudsters. The Treasury’s Office of Foreign Assets Control (OFAC) had previously added the platform and associated entities to its sanctions list, a move that typically prohibits U.S. persons from transacting with them and requires the blocking of their assets.

In response to the asset freeze, Xinbi reportedly called the action unfair, arguing it was not given sufficient opportunity to address the concerns. The case highlights the increasing collaboration between blockchain intelligence firms and federal agencies to track and disrupt the financial infrastructure of cybercrime.