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The U.S. Department of Justice cracks down on the Xinbi scam service market, seizing $52 million in cryptocurrency assets

According to a notice from the U.S. Department of Justice, the Department's Fraud Center Strike Force, in coordination with the Department of the Treasury, took coordinated law enforcement action against Xinbi Guarantee, seizing and restricting the disposal of over 52 million dollars in cryptocurrency in a single day, bringing the total assets restricted by the task force to approximately 938 million dollars. Tether provided proactive assistance in this investigation.The Department of Justice alleges that Xinbi is an illegal scam service market primarily operating through Telegram, providing customized investment scam websites, money laundering services, and recruiting victims of human trafficking to work in scam parks in Southeast Asia. Law enforcement has seized its Telegram channel and two cryptocurrency wallets holding approximately 12 million dollars, and restricted the disposal of an additional 47 related wallets.At the same time, the U.S. Department of the Treasury's Office of Foreign Assets Control designated Xinbi as a significant transnational criminal organization and sanctioned two additional entities that support it. The task force also assisted Madagascar in shutting down 13 scam parks operated by Chinese criminal groups, processing over 3,200 electronic devices, and local authorities arrested nearly 400 people.

first_img Brazilian Bank Expands Cryptocurrency Services, Regulatory Framework Takes Shape

Brazilian banks are expanding their cryptocurrency services for customers. According to Folha de S.Paulo, Brazil's largest asset management bank, Itaú, now offers 15 types of cryptocurrencies, including Bitcoin, Ethereum, and the US dollar stablecoin USDC, through its investment app. Brazil's largest fintech company, Nubank, has listed 28 types, and Banco do Brasil, the most profitable state-owned bank in Brazil, has seen transaction volumes exceed 11 million reais (approximately 2.1 million USD) since launching direct purchase services for Bitcoin and Ethereum in January of this year.However, customer cryptocurrency transactions have not entered the banks' balance sheets. A document from the central bank dated March 2026 shows that Brazilian banks hold zero virtual assets on their books. Over the past year, Itaú, Bradesco, Santander, Banco do Brasil, and Nubank have all expanded their cryptocurrency product lines, while the Brazilian cryptocurrency market has also reached record sizes. According to data from the Brazilian Federal Revenue Service, Receita Federal, Brazilians transferred 505.5 billion reais (approximately 98.7 billion USD) through cryptocurrencies in 2025, more than five times that of 2020, with corporate transactions accounting for 98.3%.This move by banks coincides with the implementation of regulations. In 2022, Brazil passed the "Virtual Asset Legal Framework," granting regulatory authority to the central bank. Three resolutions issued in November 2025 require any institution allowing customers to trade, hold, or send cryptocurrencies to obtain a license, meet minimum capital requirements, and segregate customer accounts, with a compliance deadline of October 30, 2026.
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