U.S. extradites Chinese national in $36.9 million crypto fraud case

Traders Union
All News
Crypto
US extradites Chinese in crypto fraud

Highlights

Zheng Zhao, extradited from the Netherlands to California, faces charges for allegedly orchestrating a $36.9 million international crypto investment fraud targeting U.S. victims.
More than $36.9 million moved from U.S. shell accounts to a single Deltec Bank (Bahamas) account, then converted to Tether and laundered through Cambodia.
Eight co-conspirators, including ShengSheng He and Jingliang Su, pleaded guilty and received prison sentences of 51 and 46 months, reflecting broader U.S. enforcement against overseas scam networks.

Extradition and charges in California case

As reported by U.S. Department of Justice, Zheng Zhao, 44, is arraigned in the Central District of California after his extradition from the Netherlands on allegations that he participated in an international cryptocurrency investment conspiracy. Prosecutors say the scheme induces U.S. victims to send money to accounts controlled by co-conspirators, who then route the funds through U.S. shell companies, overseas bank accounts and digital asset wallets.

According to court documents, the alleged fraud begins with unsolicited contact through social media, phone calls, text messages and online dating services to build trust with victims. Co-conspirators then promote fake digital asset investments and direct victims to fraudulent websites designed to resemble legitimate cryptocurrency trading platforms.

Prosecutors say victims are falsely told their investments are gaining value, while the money is in fact stolen. Zhao was charged in August 2025 with conspiracy to commit money laundering and faces a maximum sentence of 20 years in prison if convicted.

International money flows and broader enforcement push

Authorities say more than $36.9 million in victim funds moves from U.S. bank accounts controlled by co-conspirators to a single account at Deltec Bank in the Bahamas. Zhao and others allegedly arrange for those funds to be converted into Tether, or USDT, and transferred to a digital asset wallet controlled in Cambodia, from which the assets are sent to leaders of scam centers across the region.

Eight co-conspirators have pleaded guilty so far, including ShengSheng He and Jingliang Su. He and Su each plead guilty to conspiracy to operate an unlicensed money transmitting business and receive prison sentences of 51 months and 46 months, respectively.

The U.S. Secret Service's Global Investigative Operations Center is investigating the case, with support from Homeland Security Investigations, Customs and Border Protection's National Targeting Center, the State Department's Diplomatic Security Service and the U.S. Marshals Service. The Justice Department says its Office of International Affairs works closely with Dutch authorities to secure Zhao's arrest and extradition, underscoring a broader enforcement push against overseas scam networks that target U.S. residents.

Cohere’s planned acquisition of AI cybersecurity startup AISLE signaled a push to strengthen enterprise security as the company expands in Europe alongside its Aleph Alpha consolidation strategy. Our earlier article noted that AISLE’s AI-driven vulnerability research aims to improve threat detection for enterprise and public-sector clients, including identifying and helping fix serious bugs in widely used software such as OpenSSL.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.