Tether Freezes USDT Wallets
Tether Freezes Millions in USDT Tied to Telegram Escrow Marketplace
Anonymous
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MistTrack said its attribution was based on wallet labels, transaction patterns and links to addresses identified as “Guarantee Merchant” wallets. One address, TWPma8xH48AEN93x2krdukV9e1j6sPsBeS, reportedly held more than $10 million in USDT when the freeze occurred.
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Xinbi Guarantee was among several Chinese-language guarantee marketplaces removed from Telegram in May 2025, although reports said the platform continued operating through alternative channels.
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Bitrace said the freeze also affected third-party addresses not directly controlled by Xinbi, including a Public Group Merchant wallet labeled “亨通集团全国拿现,” which it said had processed more than $72 million in illicit funds over the preceding year.
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Estimates cited by investigators place the wider activity of guarantee marketplaces removed during Telegram’s crackdown at more than $35 billion in USDT-denominated transactions; Elliptic separately estimated that Huione Guarantee alone processed more than $27 billion before its removal.
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The freeze could prompt Xinbi-linked operators to move funds to other wallets or blockchain networks, while Tether’s blacklist function prevents restricted addresses from transferring USDT through the token’s smart contracts.
Tether froze about $39.27 million in USDT across 10 TRON addresses linked to Xinbi Guarantee, a Chinese-language Telegram escrow marketplace, according to blockchain-monitoring firm MistTrack. The action targets a network accused of facilitating scams and money laundering, though wallet attribution alone does not prove criminal conduct. A separate estimate from Bitrace put the total freeze at over $45 million across 19 Xinbi-related addresses.
Tether has not publicly confirmed the freezes or explained its rationale. The move highlights the stablecoin issuer's power to freeze wallets through USDT's address-blacklisting function. It follows similar freezes targeting Huione Guarantee and reflects growing pressure on platforms facilitating illicit crypto activity.
Xinbi's Alleged Role in Scams and Money Laundering
Xinbi Guarantee operated as an escrow marketplace on Telegram. Users could deposit crypto with the platform as a middleman for transactions. Investigators accused Xinbi of enabling scams, money laundering, and other illicit activity. The UK sanctioned Xinbi in March over alleged links to scam compounds and human-rights abuses. MistTrack attributed wallets to Xinbi using labels, transaction patterns, and ties to known 'Guarantee Merchant' addresses.
One frozen address, TWPma8xH48AEN93x2krdukV9e1j6sPsBeS, held over $10 million in USDT when the freeze occurred. Investigators estimate that Xinbi-linked wallets processed billions of dollars in USDT transactions over time. The scale underscores how guarantee marketplaces became key infrastructure for moving illicit funds.
Telegram's Crackdown and Platform Migrations
Xinbi Guarantee was removed from Telegram in May 2025 alongside other Chinese-language guarantee marketplaces. However, reports indicated the platform continued operating through alternative channels after removal. This pattern is common—platforms banned from mainstream networks often relocate to encrypted messaging apps or peer-to-peer channels where moderation is minimal.
Investigators estimate that guarantee marketplaces removed during Telegram's crackdown processed more than $35 billion in USDT transactions collectively. Elliptic separately found that Huione Guarantee alone handled over $27 billion before its removal. These figures show the scale of capital flowing through these informal escrow systems.
Tether's Blacklist Power and Operator Responses
Tether's freeze function prevents restricted addresses from moving USDT through the token's smart contracts. This gives the stablecoin issuer powerful centralized control—a feature that conflicts with crypto's decentralization ethos but is increasingly used to combat illicit activity. The blacklist applies globally across all TRON networks where USDT operates.
The $39 million freeze may prompt Xinbi operators to shift funds to other wallets or different blockchains. However, moving large sums carries risk—law enforcement and blockchain analysts can track transactions across chains. Bitrace noted that the freeze also affected third-party addresses not directly controlled by Xinbi, including a 'Public Group Merchant' wallet that processed over $72 million in illicit funds in the prior year.
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