Chinese National Extradited to US in $36.9M Crypto Scam

A Chinese national has been extradited from the Netherlands to Los Angeles over an alleged Cambodia-based crypto investment scam that targeted 174 identified Americans, according to CryptoNews. Prosecutors allege more than $36.9 million passed through a Bahamas bank account before being converted into Tether's USDT and distributed to scam-center leaders in Cambodia.

The U.S. Department of Justice stated that Zheng Zhao, 44, appeared in federal court following his extradition. The Los Angeles U.S. Attorney's Office ordered him detained and scheduled an arraignment for Nov. 30. Zhao was charged in August 2025 with conspiracy to commit money laundering, a charge that carries a maximum sentence of 20 years in federal prison if he is convicted.

International Laundering Operation

According to court documents cited by the Department of Justice, overseas participants approached victims through unsolicited social media messages, phone calls, texts, and dating services. After building trust, the perpetrators promoted purported digital asset investments and directed victims toward fake websites designed to resemble legitimate cryptocurrency trading platforms.

Stolen funds were routed through U.S. shell companies, foreign bank accounts, and digital asset wallets. More than $36.9 million moved from U.S. accounts controlled by participants into an account at Deltec Bank in the Bahamas belonging to Axis Digital Limited. Prosecutors alleged that Zhao and others arranged for the bank to convert the funds into USDT and send the assets to a Cambodia-controlled wallet.

Previous Sentences and Co-Conspirators

Eight co-conspirators have pleaded guilty in connection with the scheme. ShengSheng He, a former co-owner of Axis Digital Limited, received a 51-month prison sentence in September 2025 after pleading guilty to conspiracy to operate an unlicensed money transmitting business, alongside a court-ordered restitution of $26,867,242.44.

Another participant, Jingliang Su, was sentenced to 46 months in prison after pleading guilty to the same charge, with identical restitution of $26,867,242.44 ordered by U.S. District Judge R. Gary Klausner. A third participant, Jose Somarriba, received a 36-month sentence.

Key facts

• Zheng Zhao, 44, was extradited from the Netherlands to Los Angeles.
• The scam targeted 174 identified Americans and moved over $36.9 million.
• Funds were laundered through a Bahamas bank account and converted into Tether's USDT.
• Zhao faces a money-laundering conspiracy charge with a maximum sentence of 20 years.
• Eight co-conspirators have pleaded guilty in the ongoing case.