13 Chinese-run scam compound dismantled in Madagascar by Scam Center Strike Force
The Strike Force team, which was in country for two weeks, supported the local authorities related to the take down of 13 scam centers that were being operated by Chinese organized crime syndicates. The Strike Force team assisted in the processing of more than 3,200 electronic devices. The Strike Force team has also opened their own investigations on the basis of interviews conducted of the nearly 400 arrestees, at least approximately 30 of whom where Chinese leaders
WASHINGTON – U.S. Attorney Jeanine Ferris Pirro, together with major federal law enforcement and interagency partners, announced actions taken by the Department of Justice’s Scam Center Strike Force to secure America against Southeast Asian cryptocurrency-related fraud and scams. The Strike Force and the Department of the Treasury took coordinated actions against Xinbi Guarantee (“Xinbi”), an illicit marketplace for scam services, and the Strike Force deployed to Madagascar to assist in the taking down of 13 Chinese-run scam compounds. Approximately $52 million of cryptocurrency involved in scam money laundering was restrained in one day, bringing the total restrained by the Scam Center Strike Force to approximately $938 million.
Joining in the announcement were U.S. Attorney for the District of Alaska Michael J. Heyman, FBI Criminal Division Deputy Assistant Director Matthew Floyd, Special Agent in Charge Tara McLeese of the United States Secret Service Washington Field Office, and Lisa Palluconi, Deputy Director of the Department of the Treasury’s Office of Foreign Assets Control.
“If Chinese organized crime can buy a custom website and a money laundering service the way you order takeout, then every American with a retirement account is in the blast radius,” said U.S. Attorney Pirro. “My Strike Force will continue to dismantle Chinese organized crime, those who facilitate it, and protect Main Street America.”
As alleged in a seizure warrant unsealed today, Xinbi is a Chinese-language illicit marketplace, run on Telegram, where vendors market their services to scam center operators. The Telegram channel operated primarily in Chinese, and the vendors post their available services on the Telegram channel, to include creating custom scam investment websites, laundering or “washing” money that scammers obtain from victims of wire fraud, and soliciting trafficking victims to work in scam compounds in Southeast Asia. Once a scammer “purchases” a service from the vendor, Xinbi as an organization holds money to be paid to the vendor until the vendors services are complete, to assure the scammers that the vendors will perform the services. The seizure warrant alleged numerous instances where U.S. victims funds were traced to specific vendors who advertised their money laundering services on the Telegram channel, and posted cryptocurrency wallets for payment on Telegram. On September 7, 2026, the U.S. District Court for the District of Columbia authorized seizure of the Telegram channels hosting this marketplace.
A vendor advertisement on the Telegram channel for “cleaning” cryptocurrency for Chinese RMB.
A vendor advertisement on Telegram for recruiting scammer (“Level 1”) agents.
Additionally, also pursuant to the same warrant, the Scam Center Strike Force seized two cryptocurrency wallets that Xinbi used to collect payments for vendors, which collectively held approximately $12 million in funds. Law enforcement also sought restraint of 47 additional cryptocurrency wallets that were believed to be associated with money laundering on Xinbi’s network and with vendors who had worked for scammers. Due to all these coordinated efforts, more than $52 million worth of cryptocurrency was restrained from Xinbi and its network of vendors that facilitate the organized crime groups running scam centers around the globe. The Strike Force thanks Tether for its proactive assistance in this investigation.
Today, in further coordinated action, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Xinbi as a significant transnational criminal organization and identified numerous cryptocurrency wallets associated with Xinbi. OFAC also designated two other entities for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, Xinbi. As a result of today’s action by OFAC, all property and interests in property of these three sanctioned entities that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. For more information, please see the Department of Treasury’s press release at this link.
“After scamming money from hardworking Americans, criminals operating overseas laundered it through the Xinbi Guarantee network, which operated under the false assumption that they were out of the reach of U.S. law enforcement, said Tara McLeese, Special Agent in Charge of the U.S. Secret Service Washington Field Office. “The efforts of our agents and investigative analysts to trace stolen funds and unveil the scope of this criminal network shows that while the methods of fraud may change, our resolve does not.”
“Global crime faces global justice, and the FBI will stop at nothing to protect the finances that hardworking Americans build over their lifetimes,” said FBI Chicago Acting Special Agent in Charge Ryan Whalen. “Today’s seizure demonstrates law enforcement and prosecutors’ commitment to identifying, disrupting, and dismantling scam centers, no matter where they are in the world. The FBI is committed to working with domestic and international partners around the globe to stop scammers before they attack and hold these criminals accountable.”
“Scam centers are not just criminal enterprises, they are engines of exploitation that devastate victims, families, and communities," said FBI Honolulu Special Agent in Charge David Porter. " These schemes target our elderly and most vulnerable, draining their finances, eroding their trust, and in many cases leaving lasting emotional harm. The FBI is committed to dismantling these networks, holding offenders accountable, and restoring a sense of security to the communities they prey upon.”
Also today, U.S. Attorney Pirro announced that the Scam Center Strike Force will expand its scope to attack scam center compounds globally. In furtherance of that expanded focus, U.S. Attorney Pirro, together with U.S. Attorney Heyman and FBI Criminal Division Deputy Assistant Director Matthew Floyd, announced that the Strike Force had deployed a team to Madagascar to assist local law enforcement in cracking down on scam centers in that country. The Strike Force team, which was in country for two weeks, supported the local authorities related to the take down of 13 scam centers that were being operated by Chinese organized crime syndicates. The Strike Force team assisted in the processing of more than 3,200 electronic devices. The Strike Force team has also opened their own investigations on the basis of interviews conducted of the nearly 400 arrestees, at least approximately 30 of whom where Chinese leaders of the scam compounds, who were repatriated to China by the Chinese government.
"Transnational criminal organizations don’t care about borders, and the Department of Justice won’t either,” said Michael J. Heyman, U.S. Attorney for the District of Alaska. We are proud to be part of the Scam Center Strike Force and will work to eliminate these international scam networks and bring justice to U.S. fraud victims across the country."
Boxes of phones from Chinese run compounds in Madagascar, reviewed by the Strike Force
Room of scam center evidence seized by the Madagascar authorities, which the Strike Force team assisted in processing.
Scam industry has become a multi-billion dollar enterprise - which leads to billions of losses across the world. Disrupting the syndicate is a welcome move by the Strike force team, building a cyber secure world.