The United States has been involved in a major international effort to dismantle 13 online fraud centers in Madagascar, which were run by Chinese nationals. According to reports, this operation led to the arrest of 500 individuals and the analysis of over 3,200 electronic devices. The U.S. federal prosecutor from Washington, Jeanine Pirro, confirmed that American investigators had been deployed to the region in the past two weeks. These investigations focused on digital evidence collected from the suspected fraud networks, which are now expanding beyond Southeast Asia and are active in regions such as Asia, the Middle East, Africa, and Central America.
The U.S. Department of Justice also announced the seizure of Telegram channels linked to a group called Xinbi Guarantee, as well as nearly $52 million in cryptocurrencies. Xinbi Marketplace, which operates on the messaging app Telegram and has over 650,000 users, was found to be offering services related to fake websites and money laundering. The U.S. Treasury has sanctioned Xinbi Guarantee, which was previously targeted by British sanctions, along with two other entities that support its activities. This comes as part of a specialized unit within the Department of Justice, established in November 2025, that focuses on combating cryptocurrency-linked fraud networks.
In Madagascar, 50 Chinese nationals who were convicted of online fraud-related offenses will be transferred back to China. This is not a release, but rather a continuation of their sentences, as they must serve their time in Chinese prisons, according to the Malagasy Ministry of Justice. The fraud centers' estimated annual revenue is nearly $40 billion, with $12 billion attributed to American victims, according to Jeanine Pirro. Similar operations are also believed to exist in countries such as Myanmar and Cambodia.
The operation highlights the growing global concern over transnational cybercrime and the need for international cooperation to combat it. The U.S. and its allies are increasingly targeting these networks through legal and financial measures, aiming to disrupt their operations and hold those responsible accountable. This case underscores the complexity of modern fraud schemes that leverage digital platforms and cryptocurrencies to operate across borders.
U.S. and Madagascar Disrupt 13 Fraud Centers Linked to Chinese Nationals
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