US Extradites Chinese National in $36.9M+ Crypto Scam With 174 Victims

Extradition Brings Zhao Before California Court

Zheng Zhao, a 44-year-old Chinese national, was arraigned successful the Central District of California connected Oct. 23 pursuing his extradition from the Netherlands. The U.S. Department of Justice (DOJ) announced Zhao’s extradition successful transportation with an alleged concern fraud operated from Cambodian scam centers.

The wealth laundering conspiracy complaint against Zhao dates from August 2025 and carries a maximum situation condemnation of 20 years. The Justice Department’s Office of International Affairs worked with Dutch authorities to unafraid his apprehension and extradition.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division said:

“This extradition should beryllium a acquisition to each those who question to exploit susceptible Americans from overseas.”

Eight co-conspirators person pleaded guilty, including ShengSheng He and Jingliang Su, who admitted conspiring to run an unlicensed wealth transmitting business. They received situation sentences of 51 months and 46 months, respectively. Zhao’s lawsuit is portion of the Criminal Division’s Cyber-Enabled Scam Initiative.

Victim Funds Allegedly Converted to USDT

Overseas participants allegedly approached prospective victims done unsolicited societal media interactions, telephone calls, substance messages, and online dating services. After gaining their trust, they promoted fraudulent integer plus investments done fake cryptocurrency trading platforms designed to lucifer morganatic exchanges.

Those targeted were told their investments were expanding successful worth portion participants allegedly diverted their wealth done a cross-border fiscal network. Prosecutors picture transfers involving U.S. ammunition companies, planetary slope accounts, and integer plus wallets. More than $36.9 cardinal moved from accounts controlled by co-conspirators to a azygous relationship astatine Deltec Bank successful the Bahamas.

Zhao and different participants allegedly arranged for the slope to person those funds into the stablecoin tether (USDT) and transportation the tokens to a integer plus wallet successful Cambodia. Co-conspirators determination past transferred the USDT to determination scam halfway leaders, according to the DOJ.

Publicly recorded blockchain transactions tin assistance investigators trace cryptocurrency transfers, the FBI explains. Movements into overseas jurisdictions tin complicate efforts to travel the money, peculiarly wherever authorities brushwood anemic anti-money laundering rules.

Separate Cases Target Overseas Scam Networks

Cambodian authorities extradited Prince Group caput Chen Zhi to China successful January successful a abstracted investigation. Prince Group is simply a Cambodia-based concern radical operating crossed aggregate industries. Chen was accused of overseeing cryptocurrency fraud involving forced labor.

Japanese authorities separately arrested alleged Prince Group subordinate Hu Shi successful Osaka successful June connected suspicion of falsifying nationalist records. Police linked him to the group, which U.S. authorities had targeted implicit allegations involving fraud and wealth laundering.

A September enactment by the DOJ’s Scam Center Strike Force, moving with the U.S. Treasury Department, targeted Xinbi Guarantee, a Chinese-language online marketplace allegedly connecting operators with vendors offering fraudulent websites and wealth laundering services. Federal authorities restrained astir $52 cardinal successful cryptocurrency successful 1 day, bringing the Scam Center Strike Force’s cumulative restrained funds to astir $938 million.