Tether has frozen more than $45 million in USDT, the dollar-pegged stablecoin, that blockchain analysts say was tied to an online marketplace called Xinbi. The Tether USDT freeze means the affected tokens can no longer be moved or spent, effectively locking them in place.
KEY TAKEAWAYS
- Tether froze USDT, meaning the tokens are locked and cannot be transferred.
- The reported value of the frozen funds is more than $45 million.
- The funds are described as linked to the Xinbi marketplace.
Tether freezes more than $45 million in USDT
A freeze does not delete the tokens. It flags the wallets holding them so the coins can no longer be sent anywhere, similar to a bank locking an account. For related coverage, see USDT Gets Brazil Payment Route Reaching 170 Million People.
Blockchain analytics firm Elliptic reported that the frozen wallets held about $52.8 million in USDT, a figure higher than the roughly $45 million cited when the news first broke. Tether has not published its own statement confirming the exact amount. For related coverage, see Orionx Freezes Withdrawals and Is Shutting Down.
USDT frozen, according to Elliptic
$52.8 million
Elliptic said 52 wallets belonging to Xinbi and its merchants were frozen beginning September 8, 2026, at 08:00 UTC. The firm said it worked with the U.S. Secret Service and that its wallet intelligence directly enabled the action.
Frozen wallets, according to Elliptic
52
Freezing tokens is a tool Tether has used before. It recently worked with investigators to freeze $72 million in USDT tied to tracked fund flows, and U.S. authorities have separately frozen $131 million in crypto linked to sanctioned entities.
The reported link to Xinbi marketplace
The frozen funds are described as linked to Xinbi, not confirmed as owned or controlled by any named person. That distinction matters, because a reported connection is not the same as established control.
Elliptic said Xinbi Guarantee and its merchants have processed at least $24 billion in transactions since starting in 2022. That number is total transaction volume, not a measure of victim losses.
The firm separately reported that a payments service called Xinbi Pay, also known as XPay, processed a further $6 billion. Elliptic treats that service as distinct from the marketplace itself.
What remains unclear about the freeze
Elliptic said Xinbi swapped roughly $2.8 million of remaining USDT into USDD, a different stablecoin, through a decentralized exchange in the hours after the freeze. This is Elliptic’s estimate and has not been independently verified.
USDD markets itself as decentralized, but Elliptic said it still carries freezing risk. Dr. Tom Robinson of Elliptic wrote:
However, its claims of decentralization are contested and it is still exposed to freezing risk, since USDD is partly collateralized with freezable USDT.
Several details remain outside what the available reporting establishes. The freeze is described as a lock on the funds, not a seizure, and there is no confirmation of any court disposition or return of money to victims.
The wider market effect is also unproven. USDT continues to trade near its $1 peg at about $0.9998, but that snapshot cannot be tied to this specific event.
For an everyday crypto holder, the practical takeaway is simple. USDT is centrally managed, which means the company behind it can freeze specific wallets when investigators request it, a feature that has itself become the subject of legal disputes.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
