Chinese National Extradited to US Over $36.9M Crypto Fraud Involving 174 Victims
A Chinese national has been extradited to Los Angeles over his alleged involvement in a $36.9 million cryptocurrency investment scam targeting 174 Americans. The international fraud network allegedly operated through scam centers in Cambodia and used fake cryptocurrency trading websites to deceive investors.
The U.S. Department of Justice announced on October 23, 2026, that Zheng Zhao, 44, had been extradited from the Netherlands. Zhao appeared in federal court in Los Angeles and was ordered detained ahead of further proceedings.
Fake Crypto Trading Platforms Used to Deceive Investors
According to federal prosecutors, the criminal network approached victims through social media, phone calls, text messages, and online dating platforms. Scammers gradually gained their trust before introducing fraudulent cryptocurrency investment opportunities.
The operators created websites that closely resembled legitimate cryptocurrency exchanges. These platforms displayed fabricated investment gains, convincing victims that their digital assets were increasing in value.
However, prosecutors allege that the scammers had already stolen the deposited funds. Investigators identified 174 American victims connected to the operation, which involved an extensive international money laundering network.
$36.9 Million Converted Into USDT and Sent to Cambodia
Federal investigators traced more than $36.9 million in victim funds through U.S. bank accounts controlled by alleged conspirators. The money eventually reached a single account at Deltec Bank in the Bahamas.
Prosecutors allege that Zhao and other participants arranged to convert the stolen funds into Tether’s USDT stablecoin. The cryptocurrency was subsequently transferred to digital wallets controlled in Cambodia.
From there, the funds allegedly reached operators managing scam centers throughout the region. The transactions highlight how criminals can exploit international banking networks and digital assets to move stolen money across borders.
Eight Defendants Plead Guilty as Zhao Faces 20 Years
Zhao faces a federal charge of conspiracy to commit money laundering. Prosecutors filed the charge in August 2025, and a conviction could result in a maximum prison sentence of 20 years.
Eight alleged co-conspirators have already pleaded guilty in connection with the operation. Among them, ShengSheng He received a 51-month prison sentence, while Jingliang Su received 46 months.
Zhao’s next scheduled court appearance is November 30, 2026. Authorities continue investigating the network through the Justice Department’s Cyber-Enabled Scam Initiative and international law enforcement partnerships.
The case underscores growing enforcement efforts against cryptocurrency investment fraud and cross-border money laundering. Zhao remains presumed innocent unless prosecutors establish his guilt beyond a reasonable doubt.
