Zheng Zhao extradited to US in $36.9 million crypto scam case

Zheng Zhao, a 44-year-old Chinese national, has been extradited from the Netherlands to Los Angeles to face money laundering conspiracy charges. Prosecutors allege that Zhao was involved in a crypto investment scam that targeted at least 174 American victims, resulting in losses exceeding $36.9 million.

The alleged laundering scheme involved moving funds through U.S. shell companies into an account at Deltec Bank in the Bahamas, where the money was converted into USDT and distributed to scam-center operators in Cambodia. The scheme reportedly utilized unsolicited social media messages, phone calls, and dating services to build trust with victims before promoting fraudulent digital asset investments.

Zhao faces a maximum sentence of 20 years if convicted. Eight co-conspirators have already pleaded guilty to related charges, including Jingliang Su and Shengsheng He, who received prison sentences of 46 and 51 months, respectively. While reports differ on whether Zhao has already been arraigned or is scheduled for an arraignment on November 30, he remains in custody.