The U.S. Department of Justice (DOJ) restrained more than $52 million in cryptocurrency during a coordinated action targeting an alleged scam network, according to stablecoin issuer Tether. Tether said on September 11, 2026, that the DOJ credited the company with assisting the enforcement action.

In this context, “restrain” means freezing cryptocurrency so that it cannot be moved or spent. It is an early legal measure and is distinct from forfeiture, which refers to the permanent taking of assets through legal proceedings. The available information does not confirm that the cryptocurrency has been forfeited or that any funds will ultimately be returned to victims.

DOJ action targeted Xinbi Guarantee

The action was carried out by the DOJ’s Scam Center Strike Force, a team focused on online fraud operations. Tether said the Strike Force restrained more than $52 million in cryptocurrency in a single day as part of the coordinated action.

The target was Xinbi Guarantee, which Tether described as a Chinese-language marketplace operating through the Telegram messaging application. Tether alleges that vendors using the marketplace offered money laundering services, fraudulent investment websites, and the recruitment of trafficking victims for scam compounds.

According to Tether, authorities seized two cryptocurrency wallets used by Xinbi to collect approximately $12 million in vendor payments. That figure refers to the amount handled by the wallets over time, not necessarily the balances held in them when they were seized.

Tether also said authorities sought to restrain 47 additional wallets believed to be connected to money laundering. A request to restrain a wallet does not establish that the wallet was ultimately frozen or seized. Tether stated that investigators traced funds belonging to U.S. victims to vendors operating through Xinbi’s network.

Tether’s role in the enforcement action

Tether issues USDT, the largest stablecoin, which is designed to maintain a value of approximately one U.S. dollar. The company said the DOJ acknowledged its proactive assistance in the case, although Tether’s announcement did not detail the precise mechanism of that assistance.

The available information distinguishes the DOJ’s role from Tether’s. The DOJ carried out the restraint, while Tether described itself as a cooperating party. The information does not identify the restrained cryptocurrency as USDT, and it does not state that Tether itself froze the wallets.

“By now, criminal organizations should understand that using digital assets does not put them beyond the reach of the law,” Paolo Ardoino, Tether’s chief executive, said in the company’s public statement on the action.

Tether placed the case within its broader record of cooperation with law enforcement. The company reports working with more than 340 law enforcement agencies across 67 countries and assisting in more than 2,800 cases globally, including more than 1,600 involving U.S. law enforcement.

Tether also says that its cooperation has helped freeze more than $5 billion in assets linked to illicit activity, including more than $2.5 billion in coordination with U.S. authorities. These figures are company-reported totals, have not been independently audited, and are separate from the cryptocurrency restrained in the Xinbi case.

Stablecoin issuers have become increasingly visible in law enforcement matters. Rival issuer Circle, for example, recently moved to end certain USDC support on the Noble chain, illustrating that issuers actively manage where and how their tokens operate.

What remains unknown

Much of the information about the operation comes from Tether’s account. The DOJ announcement linked to the case could not be independently read, so the operational details described here are attributed to Tether rather than directly confirmed by the government.

The available material does not establish whether the assets will be forfeited, sold, or used to repay victims. A restraint is an early legal step and does not represent the conclusion of a case. Relevant updates would include court filings or government statements identifying the assets, confirming the status of the wallet restraints, and describing any forfeiture or victim-recovery process.

The exact identity of the restrained assets, their owners, the case number, and the next legal steps also remain unspecified in the confirmed material. One news report associated the operation with a cumulative enforcement total of $938 million for the Scam Center Strike Force. However, that figure came from unconfirmed reports, and the underlying government statement was not readable.

The market data cited around the announcement did not establish a reaction to the enforcement action. USDT traded at approximately $0.9998, maintaining its dollar peg, while the broader crypto Fear \u0026 Greed reading was 56, classified as “Greed.” Neither figure demonstrates that the case caused a market move.

The case illustrates that law enforcement can reach on-chain funds and that digital-asset issuers may assist authorities in freezing them. It does not indicate that the balances of ordinary USDT or other token holders were affected.

For additional policy context, the U.S. Senate is separately considering the CLARITY Act on crypto market rules. The original report was published by CoinLineup, and Tether’s announcement is available in its official statement.

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital-asset markets carry significant risk.