Key Takeaways
- • Zheng Zhao, a Chinese national, was extradited from the Netherlands to the United States to face federal charges in California over a cryptocurrency investment scheme that defrauded more than 174 American victims of over $36.9 million (approximately ₹330 crore).
- • Zhao is charged with conspiracy to commit money laundering, which carries a potential statutory maximum of 20 years in prison if convicted in federal court.
- • More than $36.9 million in victim deposits moved from US bank accounts run by co-conspirators into a single account at Deltec Bank in the Bahamas, where funds were converted into Tether and transferred to a wallet controlled in Cambodia.
- • Eight co-conspirators have already been convicted in the broader federal probe, including ShengSheng He (51-month sentence) and Jingliang Su (46-month sentence), who pleaded guilty to conspiracy to operate an unlicensed money-transmitting business.
- • The investigation was led by the US Secret Service Global Investigative Operations Center with support from several federal agencies and Dutch law enforcement; Zhao's case remains pending trial.
Summary
A Chinese national, Zheng Zhao, has been extradited from the Netherlands to the United States to face federal charges in California over an alleged international cryptocurrency investment scheme that defrauded more than 174 American victims of over $36.9 million, according to the publisher's account of court documents. Zhao was arraigned following a multi-agency investigation coordinated by the US Department of Justice into cross-border cyber fraud networks operating out of scam centers in Cambodia. Prosecutors allege the syndicate moved investor capital through domestic accounts, offshore entities, and digital asset wallets to obscure the paper trail.
Court documents indicate the syndicate contacted potential victims through unsolicited social media messages, calls, texts, and online dating platforms, then persuaded them to deposit funds into purported digital asset trading services. Victims were directed to fraudulent websites designed to mimic legitimate cryptocurrency exchanges, where fabricated balances and simulated profits suggested steady appreciation. When victims attempted to withdraw capital, withdrawals were blocked and additional deposits were demanded. Zhao was charged in August 2025 with conspiracy to commit money laundering.
Investigators traced more than $36.9 million in victim deposits from domestic US bank accounts run by co-conspirators into a single account at Deltec Bank in the Bahamas. Funds were then converted into Tether, a US dollar-pegged cryptocurrency, and transferred to an encrypted wallet controlled in Cambodia, where they were distributed to regional scam operators. Investigators said shell companies, overseas bank accounts, and token transfers were deliberately used to evade detection and hinder asset recovery.
The case forms part of a broader federal prosecution that has already produced convictions against eight co-conspirators. ShengSheng He and Jingliang Su admitted guilt to conspiracy to operate an unlicensed money-transmitting business; He received a 51-month prison term and Su a 46-month sentence. The inquiry is led by the US Secret Service Global Investigative Operations Center, supported by Homeland Security Investigations, the National Targeting Center of Customs and Border Protection, the Diplomatic Security Service, and the US Marshals Service. The DOJ Office of International Affairs worked with Dutch law enforcement to effect Zhao's detention and transfer. Legal proceedings against Zhao remain pending, with prosecutors required to substantiate the charges at trial.
Court documents indicate the syndicate contacted potential victims through unsolicited social media messages, calls, texts, and online dating platforms, then persuaded them to deposit funds into purported digital asset trading services. Victims were directed to fraudulent websites designed to mimic legitimate cryptocurrency exchanges, where fabricated balances and simulated profits suggested steady appreciation. When victims attempted to withdraw capital, withdrawals were blocked and additional deposits were demanded. Zhao was charged in August 2025 with conspiracy to commit money laundering.
Investigators traced more than $36.9 million in victim deposits from domestic US bank accounts run by co-conspirators into a single account at Deltec Bank in the Bahamas. Funds were then converted into Tether, a US dollar-pegged cryptocurrency, and transferred to an encrypted wallet controlled in Cambodia, where they were distributed to regional scam operators. Investigators said shell companies, overseas bank accounts, and token transfers were deliberately used to evade detection and hinder asset recovery.
The case forms part of a broader federal prosecution that has already produced convictions against eight co-conspirators. ShengSheng He and Jingliang Su admitted guilt to conspiracy to operate an unlicensed money-transmitting business; He received a 51-month prison term and Su a 46-month sentence. The inquiry is led by the US Secret Service Global Investigative Operations Center, supported by Homeland Security Investigations, the National Targeting Center of Customs and Border Protection, the Diplomatic Security Service, and the US Marshals Service. The DOJ Office of International Affairs worked with Dutch law enforcement to effect Zhao's detention and transfer. Legal proceedings against Zhao remain pending, with prosecutors required to substantiate the charges at trial.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.