Chinese National Extradited to US Over $36.9M Crypto Scam Targeting 174 Americans

Highlights:

• A Chinese national was extradited to the US over a $36.9 million cryptocurrency scam targeting 174 Americans.
• The scammers used fake crypto trading websites to steal investors’ money and transfer funds to Cambodia.
• Eight people have already pleaded guilty, while the extradited suspect faces up to 20 years in prison.

A Chinese national has been extradited from the Netherlands to Los Angeles over his alleged role in a $36.9 million cryptocurrency scam linked to operations in Cambodia. The scheme used fake crypto trading websites to steal money from American investors. US authorities have identified 174 victims.

According to an October 23 announcement from the US Department of Justice (DOJ), the suspect, 44-year-old Zheng Zhao, appeared in federal court in Los Angeles following his extradition. Authorities ordered him detained, with his next court appearance scheduled for November 30. Zhao faces a charge of conspiracy to commit money laundering. Prosecutors allege that he helped an international criminal network move stolen funds through bank accounts and cryptocurrency wallets.

JUST IN: A Chinese national has been extradited to the U.S. over an alleged Cambodian crypto scam that targeted 174 Americans and laundered over $36.9 million. pic.twitter.com/veduLETUeI

— EyeWhales (@EyeWhales) October 24, 2026

How the Cambodia-Based Crypto Scam Targeted Americans

According to court documents, the scammers approached potential victims through social media, phone calls, text messages, and online dating platforms. They first worked to gain their trust before introducing fake cryptocurrency investment opportunities.

The group then directed victims to fraudulent websites that looked like legitimate crypto trading platforms. Investors believed they were buying digital assets and earning returns. However, the websites only created the appearance of successful investments. Prosecutors said the scammers had already taken the deposited money.

The network also used US shell companies and overseas bank accounts to move the stolen funds. These transactions helped conceal the money’s origin and destination. Investigators eventually traced more than $36.9 million in victim funds to a single account at Deltec Bank in the Bahamas.

Stolen Funds Were Converted Into USDT and Sent to Cambodia

Prosecutors allege that Zhao and other network members arranged for Deltec Bank to convert the funds into Tether (USDT), a stablecoin designed to maintain a value close to one US dollar. The group then transferred the USDT to a cryptocurrency wallet controlled in Cambodia.

From there, other members of the network allegedly sent the funds to operators of scam centers across the region. The DOJ said the group used both traditional banking services and digital asset transfers to move money internationally. Assistant Attorney General A. Tysen Duva warned that US authorities would continue pursuing suspects involved in overseas financial scams. “This extradition should be a lesson to all those who seek to exploit vulnerable Americans from overseas,” Duva said.

Eight Suspects Have Already Pleaded Guilty

Prosecutors charged Zhao with conspiracy to commit money laundering in August last year. If convicted, he could face up to 20 years in federal prison. Meanwhile, eight other people connected to the same operation have already pleaded guilty.

Among them are ShengSheng He and Jingliang Su, who pleaded guilty to conspiracy to operate an unlicensed money-transmitting business. They received prison sentences of 51 months and 46 months, respectively. In January 2026, a federal court also ordered Su to pay approximately $26.9 million in restitution to victims.

The US Secret Service is investigating the case, with support from other federal agencies. Dutch authorities also helped arrest and extradite Zhao. The investigation forms part of the DOJ’s Cyber-Enabled Scam Initiative, which targets international fraud networks and their financial operations. Zhao has not been convicted, and the allegations against him remain subject to court proceedings.