Alleged Cambodia-Linked Crypto Scam Launderer Extradited to US Over $37M Fraud

Zheng Zhao, 44, has been extradited from the Netherlands to the United States and arraigned in federal court, the US Justice Department said. He faces a conspiracy to commit money laundering charge that carries a maximum of 20 years in prison. Prosecutors allege he and others ran a global cryptocurrency investment scheme from several countries, including scam centres in Cambodia, and defrauded at least 174 US residents of nearly $37 million.

According to officials, the group contacted victims first through social media, phone calls, text messages and online dating sites, building a relationship and trust over time. They then promoted crypto investments and directed victims to fake websites that looked like legitimate trading platforms. Victims were told their investments were growing, but their money had already been moved from US bank accounts controlled by the group to an account at Deltec Bank in the Bahamas. The funds were allegedly converted to Tether, sent to a digital wallet controlled in Cambodia, and then shared among scam network leaders in the region.

Eight co-conspirators have already pleaded guilty. Shengsheng He and Jingliang Su were sentenced to 51 and 46 months in prison respectively. Another, Joseph Wong of California, allegedly managed a network of money launderers in Los Angeles who registered shell companies, opened US bank accounts and moved stolen funds overseas. The US Secret Service said it will keep pursuing those who run scam centres and their financial infrastructure.