The UK government has implemented significant sanctions on the crypto-linked marketplace Xinbi, intensifying its efforts to combat fraud and human rights violations across Southeast Asia. This move marks a crucial step in disrupting the operations of scam networks leveraging cryptocurrency to facilitate widespread deceit.

Xinbi’s Role in Fraudulent Activities

Xinbi, a Chinese-language marketplace, has been identified as a central player in enabling fraud networks through its crypto-based services. According to blockchain analytics firm Chainalysis, Xinbi processed over $19.9 billion in transactions between 2021 and 2025, highlighting its involvement in money laundering and other illicit activities.

The marketplace is accused of selling stolen personal data and providing tools for targeting victims, including satellite internet equipment. These services have supported scam centres across the region, which often use deceptive tactics like fake romantic relationships to exploit individuals, including those in the UK.

Targeting the Financial Infrastructure

The UK’s sanctions aim to isolate Xinbi from the legitimate crypto ecosystem, thereby hindering its transaction capabilities. These measures also extend to Legend Innovation Co., the operator of a major scam compound in Cambodia, and its affiliations, previously sanctioned by the UK and US.

This crackdown is part of a broader UK strategy to dismantle the infrastructure supporting global scam operations. The initiative is set to precede the UK’s Illicit Finance Summit, where international cooperation on combating illicit fund movements will be a key discussion point.

Immediate Impact and Future Measures

The sanctions are expected to have an immediate impact by further restricting access to financial channels utilized by these networks. UK authorities have already frozen several London properties linked to the networks, adding to previously seized assets.

Stephen Doughty MP, the UK’s Minister of State for Europe, North America, and Overseas Territories, emphasized the UK’s commitment to protecting its citizens from scams and human rights abuses. The government’s actions send a strong message of zero tolerance towards such activities.

The UK’s decisive actions against Xinbi underscore its determination to lead international efforts in combating cryptocurrency-enabled fraud.

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A devastating crypto scam has rocked Hong Kong, as a retiree lost a staggering $840,000 in a series of fraudulent schemes. This incident highlights the growing threat of crypto scams and the need for vigilance in the digital currency market.

The First Scam: A Trust Betrayed

The ordeal began in September 2025 when a 66-year-old retiree was approached on WhatsApp by someone claiming to be a ‘virtual currency investment expert.’ Lured by promises of guaranteed profits, the retiree transferred $180,000 into a crypto wallet managed by the scammer. The scammer vanished, leaving the victim with significant losses and prompting a police report.

Repeated Fraud: A Vicious Cycle

In the months following the initial scam, the retiree fell victim to two more fraudsters. Desperate to recover the lost funds, the victim sought help online, only to encounter another ‘crypto expert’ who demanded $75,000 as a security deposit. This expert also disappeared after receiving the payment.

In January, a third scammer promised to recover all previous losses if the retiree bought $585,000 in crypto and sent it to a specified address. Once again, the scammer vanished, bringing the total loss to approximately $840,000 over six months.

The Broader Context: Rising Web3 Fraud

This case is part of a broader trend of increasing crypto-related crime. According to security firm Hacken, Web3 platforms experienced $3.95 billion in losses in 2025, driven by state-linked hackers and weak security measures.

Authorities worldwide are combating new waves of phishing and investment fraud. The FBI warned about fake tokens on Tron, while India investigates the GainBitcoin scam, and the US works to recover $3.4 million in Tether from a multi-state scam.

Protect yourself from scams by being wary of unsolicited messages, promises of guaranteed returns, and requests for security deposits. Trust only verified professionals and conduct thorough research before making any investments.

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Key Arrest in GainBitcoin Scam Investigation

The GainBitcoin scam, a major cryptocurrency fraud case, has seen a new development with the arrest of Ayush Varshney at Mumbai airport. The CBI announced this action after a Look Out Circular had been issued, preventing Varshney from leaving the country. The arrest has linked Darwin Labs to the technological infrastructure that supported the GainBitcoin investment scheme.

Role of Darwin Labs in GainBitcoin Scheme

Darwin Labs is alleged to have played a crucial role in creating the platforms used for the GainBitcoin scheme. The CBI stated that the company was involved in designing tools like the GainBitcoin investor platform and the Bitcoin payment gateway. Furthermore, Darwin Labs co-founders, including Varshney, Sahil Baghla, and Nikunj Jain, were instrumental in developing the MCAP cryptocurrency token and its smart contract.

Impact on the Cryptocurrency Community

GainBitcoin emerged in the mid-2010s, promising attractive monthly returns to investors. However, it eventually relied on a multi-level marketing system, leading to significant losses. The CBI reported that around 8,000 investors were affected, with losses estimated at approximately $790 million. The scheme’s mastermind, Amit Bhardwaj, died in 2022, leaving behind a complex case that continues to impact the cryptocurrency community.

As the investigation progresses, the crypto community watches closely for further developments in the GainBitcoin case, which remains one of India’s largest alleged cryptocurrency frauds.

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In a significant enforcement action, federal agents in North Carolina have seized over $61 million in USDT linked to a notorious ‘pig butchering’ crypto scam. This operation reflects a growing concern over crypto scams and highlights the collaborative efforts between law enforcement and crypto companies.

Understanding the ‘Pig Butchering’ Crypto Scam

The ‘pig butchering’ scam is a sophisticated fraud that combines elements of romance scams and fake trading platforms. Scammers build trust with victims through fabricated online relationships, presenting themselves as experienced traders. They lure victims into investing in fraudulent crypto sites that showcase fictitious portfolios with high returns, only to block withdrawals and demand additional fees later.

The Role of USDT in the Scam

USDT, a popular stablecoin, was extensively used by scammers to facilitate this fraud. Investigators from Homeland Security traced the laundered funds across multiple digital wallets, eventually identifying addresses with substantial amounts that were subsequently seized.

Tether, the issuer of USDT, cooperated with authorities, assisting in the transfer of seized assets. This collaboration underscores the role of stablecoin issuers in combating crypto crime.

Rising Threat of Crypto Scams

Crypto fraud, including ‘pig butchering’ schemes, is on the rise. Chainalysis data from 2026 indicates that crypto scam losses in 2025 reached a staggering $17 billion. The rise of AI-driven scams, which saw a 1,400% increase, is a significant concern for both investors and regulators.

Legal Actions and Sentences

US prosecutors are actively pursuing perpetrators of these scams. In a notable case, a key player in a $70 million crypto laundering operation received a 20-year federal prison sentence, reflecting the judiciary’s stance on such crimes.

The crypto community must remain vigilant and informed to protect itself from evolving threats. Ongoing cooperation between law enforcement and industry players is crucial in mitigating these risks and preserving the integrity of the crypto market.

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Details of the Crypto Laundering Operation

The man, Jingliang Su, a Chinese national, was sentenced by U.S. District Judge R. Gary Klausner. Su is also ordered to pay over $26 million in restitution, according to the U.S. Attorney’s Office for the Central District of California. Prosecutors revealed that Su was part of an international crime network that manipulated victims in the U.S. into transferring funds to accounts controlled by the schemers.

The illicit funds were laundered through U.S. shell companies, digital asset wallets, and global bank accounts. Co-conspirators targeted individuals through texts, calls, and online dating platforms, promoting counterfeit crypto investments using fake websites resembling legitimate trading platforms.

How the Scam Unfolded

Victims were misled into believing their investments were growing, while in reality, their money was being siphoned. More than $36.9 million was channeled to a bank account at Deltec Bank in the Bahamas and subsequently converted to Tether (USDT).

Prosecutors stated, “From there, co-conspirators in Cambodia transferred the USDT to leaders of scam centers across the region.” The government identified 174 victims in the U.S. alone.

Legal Proceedings and Outcomes

In June, Su pleaded guilty to conspiracy to operate an illegal transmitting business. Eight individuals have pleaded guilty in connection to the scam, including Shengsheng He, who received a sentence of over four years in prison.

First Assistant United States Attorney Bill Essayli commented, “New investment opportunities may sound promising, but they attract criminals who, in this case, laundered tens of millions of dollars.” This case serves as a stark reminder of the risks associated with digital-asset investments.

The Block, an independent media outlet, reports on such cases to deliver timely and impactful news about the crypto industry.

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As the trial enters into its second week, David Patton, the lawyer representing Storm, has challenged the witness’ claims that her stolen cryptocurrency was laundered via Tornado Cash. The reports of this development have been covered by DL News and CoinDesk.

The witness, Hanfeng Ling, had previously testified that she fell prey to a pig butchering scam in 2021. She also asserted that a “crypto recovery service” she utilized indicated that some of the stolen funds had been funneled through Tornado Cash. However, Storm’s defense team expressed their inability to trace Ling’s funds back to Tornado Cash over the weekend.

Taylor Monahan, an Ethereum security expert, took to social media over the weekend to state that scammers do not typically use Tornado Cash. She made a series of posts detailing her belief that Ling’s funds were not laundered via Tornado Cash.

Storm’s trial, which started last week in a Manhattan federal court, sees him facing charges of conspiracy to commit money laundering and sanctions violations connected to his operation of Tornado Cash. If found guilty on all charges, Storm could be looking at a maximum sentence of 45 years in prison. He has entered a plea of not guilty.

Disclaimer: The Block is an independent media platform providing news, research, and data. Foresight Ventures, a majority investor in The Block as of November 2023, also invests in other crypto-related enterprises. Crypto exchange Bitget is an anchor LP for Foresight Ventures. Regardless, The Block continues to deliver objective, high-impact, and timely information about the crypto industry. The details of our financial disclosures can be found here.

© 2025 The Block. All Rights Reserved. This article is for informational purposes only and should not be considered as legal, tax, investment, financial, or other advice.

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According to court documents, the victim, a Gemini creditor, was fooled into believing that their account had been compromised. The scammers, posing as Google and Gemini support, persuaded the victim to reset their 2-factor authentication and transfer their Gemini funds to a compromised wallet. In the course of this scam, the victim’s Bitcoin private key was also leaked through screen sharing via AnyDesk.

In a coordinated effort, Chetal accessed the victim’s Gmail and iCloud accounts, while another hacker, Malone Lam, searched for personal information. The third accomplice, Jeandiel Serrano, posed as a customer service representative. By the early hours of August 19, 2024, the hackers had successfully drained the victim’s wallet.

However, their triumph was short-lived. During the live stream, Chetal inadvertently leaked his name and was referred to as Veer by his accomplices. This, along with a series of other mistakes, led to their downfall and eventual arrest.

After the initial heist, the stolen Bitcoin was traced to more than 15 different exchanges, where it was swapped multiple times between Litecoin (LTC), Ether (ETH), Monero (XMR), and Bitcoin. Chetal’s lavish spending on luxury goods also helped trace the stolen wealth back to him.

In an unexpected twist, Chetal agreed to cooperate with authorities and testify against his co-conspirators. However, while out on bail, he was implicated in another social engineering scam involving a $2 million theft. This led to his re-arrest and the denial of his request for re-release on bond.

The Veer Chetal case serves as a stark reminder of the potential risks associated with cryptocurrency and highlights the need for vigilant cyber security practices.

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Despite a direct call to action from former US President Donald Trump, the cryptocurrency-related bills he supported failed to progress through a key procedural stage in the House of Representatives on Tuesday. Trump had encouraged Republican representatives to pass the legislation concerning the regulation of payment stablecoins as part of a broader initiative to advance cryptocurrency legislation ahead of the August recess.

In a post on his social media platform, Truth Social, Trump urged Republicans to support the GENIUS Act, which seeks to regulate payment stablecoins in the US. This bill was one of three others aimed at addressing market structure and central bank digital currencies that Republican leaders were promoting as part of their “crypto week” initiative.

In another development, Abacus Market, the largest Bitcoin-enabled Western darknet marketplace, abruptly went offline, sparking suspicions of an exit scam. The entire infrastructural setup, including its clearnet mirror, is now inaccessible, according to a report by TRM Labs. The sudden disappearance led TRM to speculate that the “operators might have staged an exit scam, ceasing operations and absconding with users’ funds.”

Ripple, meanwhile, confirmed its plan to apply for a MiCA license, aimed at expanding its cryptocurrency and stablecoin operations across the European Economic Area. A representative from Ripple stated that the company acknowledges the “significant opportunity in the European market” and intends to become “MiCA-compliant”.

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In August 2024, a single victim’s account lost approximately 4,100 BTC worth $243 million in an overnight heist. The culprits were three gamers-turned-hackers, who employed sophisticated social engineering tactics to commit the theft. The youngest among them, 19-year-old Veer Chetal, became notorious for his audacious acts.

The trio, including Chetal, Malone Lam, and Jeandiel Serrano, orchestrated a well-planned attack. They deceived the victim with fake calls from Google and Gemini support teams, convinced the victim to change their 2-factor authentication (2FA), and then transferred the funds to a compromised wallet. Moreover, they tricked the victim into sharing their screen via AnyDesk, revealing their Bitcoin private key.

Despite executing their plan successfully, their sloppy mistakes led to their downfall. Crypto investigator ZachXBT, who had been following the case closely, discovered a recording of the hackers’ live reactions as they received the stolen Bitcoin. Chetal further incriminated himself by accidentally leaking his name during the livestream and purchasing luxury items with the stolen funds.

Following the investigation, all three culprits were arrested. However, Chetal’s saga didn’t end there. After agreeing to cooperate with the authorities and pleading guilty, he was involved in yet another scam while out on bail, stealing an additional $2 million.

This case serves as a stark reminder of the need for vigilance in the digital age, especially as young, tech-savvy individuals are drawn into the world of high-stakes digital crime. Awareness, open conversations, and firm boundaries around financial access are crucial to curb such illicit activities.

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This groundbreaking revelation is the culmination of an intensive 18-month probe into the world of cryptocurrency by a consortium of Australian law enforcement and intelligence agencies. Initiated in December 2023, the investigation was led by the Queensland Joint Organized Crime Taskforce (QJOCTF) and involved tracing the suspicious money flow of a ring member, leading to the unearthing of a complex and large-scale money laundering operation.

According to the authorities, the perpetrators laundered a total of $123 million using a convoluted system of front businesses and cryptocurrencies. This illicit money was then converted into cryptocurrencies.

Money laundering is a technique used by criminals to make illegally-acquired money appear legitimate. The highly structured process often involves three stages: placement (introducing the illegal money into the financial system), layering (obscuring the source of the money through a series of complicated transactions), and integration (redistributing the now “clean” money back to the criminals). This process is frequently used to purchase properties, luxury goods, and in this case, cryptocurrencies.

The Australian scam ring involved a multi-step scheme to evade Anti-Money Laundering (AML) measures. The key player was a security firm that transported illicit funds to its front businesses. These funds were then transferred to a car dealership, which served as the perfect front for money laundering due to its regular large cash transactions. Upon receipt, the dealership would mix the illegal funds with legitimate income during bank deposits, further obscuring their origin. These funds were then forwarded to a sales promotion company, which converted part of the proceeds into cryptocurrencies.

Following the revelation of this scheme, authorities swiftly acted to seize $170,000 worth of crypto assets, $30,000 cash, and business documents. Seventeen properties, cars, and funds in multiple bank accounts were also frozen, with the total value of the frozen assets amounting to around $21 million. The investigation continues with the potential for more individuals to be charged.

Despite occasional associations with illegal activities, the use of cryptocurrencies in criminal activities accounts for only a small fraction of total crypto volume. Cryptocurrency transactions are indeed anonymous, but each transaction leaves a permanent, traceable record on the public ledger, providing law enforcement agencies with a trail to follow. As this case demonstrates, the very features that may attract criminals can also lead to their downfall.

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