Chinese national extradited for alleged $37M cryptocurrency scam

Zheng Zhao, a 44-year-old Chinese national, has been extradited from the Netherlands to the United States to face federal charges related to a massive investment scam. Prosecutors allege that Zhao and his co-conspirators orchestrated a global cryptocurrency scheme that defrauded at least 174 U.S. residents of nearly $37 million.

The criminal network reportedly used social media, phone calls, and online dating sites to build trust with victims before directing them to invest through fraudulent websites designed to mimic legitimate trading platforms. Once funds were sent, they were transferred from U.S. bank accounts to an account at Deltec Bank in the Bahamas, converted to Tether, and then moved to digital wallets in Cambodia.

Zhao faces a conspiracy to commit money laundering charge, which carries a potential prison sentence of up to 20 years. Eight co-conspirators have already pleaded guilty to participating in the scheme, including Shengsheng He and Jingliang Su, who received prison sentences of 51 and 46 months, respectively. Another accomplice, Joseph Wong, managed a money laundering network in Los Angeles using shell companies to facilitate international transfers.