technology & cybersecurity•Thu, September 10, 2026•5 min read

The $52 Million Blow: How the US DOJ Just Took Down a Massive Global Scam Network

In a major interagency operation, the US Department of Justice has crippled a Chinese-run scam marketplace and dismantled 13 criminal compounds in Madagascar. This strike against the 'Xinbi Guarantee' network marks a significant escalation in the federal government’s war on industrial-scale cyber fraud.

A Coordinated Strike Against Global Fraud

Federal authorities have delivered a crushing blow to the infrastructure that powers transnational cybercrime. In a high-stakes operation announced this week, the U.S. Department of Justice (DOJ) successfully targeted Xinbi Guarantee, a Telegram-based marketplace that functioned as a central hub for scam services. The operation resulted in the freezing of more than $52 million in laundered cryptocurrency and the coordinated dismantling of 13 Chinese-run scam compounds located in Madagascar.

Law enforcement officials coordinate international efforts to shut down illicit operations.

What Was Xinbi Guarantee?

Operating through encrypted channels on Telegram, Xinbi Guarantee served as a 'one-stop shop' for criminal enterprises. With a user base exceeding 650,000, the platform provided the necessary tools for scammers to recruit workers, establish fraudulent investment platforms, and launder stolen funds on an industrial scale. By sanctioning the marketplace and two affiliated organizations, the Treasury Department and the DOJ have effectively cut off the logistical support used to prey on victims worldwide.

The Madagascar Takedown

The physical reality of these digital crimes was concentrated in 13 compounds in Madagascar. The DOJ’s 'Scam Center Strike Force,' which has been active since late 2025, played a critical role in working with local authorities to raid these sites. The results of this collaboration were swift:

50 Chinese nationals involved in the operations were tried and convicted in Madagascar.
The convicted individuals were subsequently sent home to China.
Over $52 million in illicit cryptocurrency was restrained in a single day.
Total funds restrained by the Scam Center Strike Force have reached approximately $938 million.

This is not a distant overseas crime story.
— Jeanine Pirro

The Road Ahead

This operation is part of a broader, aggressive U.S. strategy to combat transnational organized crime syndicates, particularly those operating out of Southeast Asia and Africa. By targeting the financial pipelines—specifically the cryptocurrency wallets used to move stolen money—federal agencies are aiming to make the business of scamming less profitable and significantly more dangerous for the operators involved.

Key Takeaways

The DOJ shut down the Xinbi Guarantee marketplace, a massive hub for cyber-scam services.
13 Chinese-run scam compounds were dismantled in Madagascar with U.S. support.
Over $52 million in cryptocurrency was seized in a single-day operation.
50 individuals were convicted in Madagascar for their role in the scam operations.
The U.S. Scam Center Strike Force has now restrained nearly $1 billion in total fraudulent assets.

FAQ

What is the Xinbi Guarantee?

It was a Telegram-based marketplace used by criminal syndicates to facilitate online scams, including tools for recruiting and money laundering.

What is the Scam Center Strike Force?

An interagency U.S. government initiative launched in November 2025 to disrupt transnational scam networks and crypto-fraud operations.

How did the U.S. get involved in Madagascar?

The U.S. provided judicial cooperation and technical support to help local Madagascar authorities raid and prosecute the criminal compounds.

Are these scam operations limited to Asia?

No. While many networks are based in Southeast Asia, they operate globally, including centers in Africa, often targeting U.S. citizens.