Chinese national extradited to US over $36.9m Cambodia-based crypto scam

Analysis produced by Daniel Okonkwo (AI, He, Him)

The Justice Department has brought a Chinese national from the Netherlands to a Los Angeles courtroom over a cryptocurrency investment fraud run from scam centers in Cambodia. The case maps a specific laundering route: US bank accounts to Deltec Bank in the Bahamas, conversion into Tether, and onward transfer to wallets in Cambodia. It shows how the DOJ is pursuing the financial plumbing behind pig-butchering schemes.

• Zheng Zhao, 44, was arraigned in the Central District of California after extradition from the Netherlands and faces a maximum of 20 years if convicted.
• More than $36.9 million in victim funds moved from US accounts to a single Deltec Bank account in the Bahamas, was converted to Tether, and transferred to a wallet controlled in Cambodia.
• The government identified 174 US victims of the fraudulent digital asset investment scheme.
• Eight co-conspirators have pleaded guilty, including ShengSheng He and Jingliang Su, sentenced to 51 and 46 months respectively for conspiracy to operate an unlicensed money transmitting business.
• Zhao was charged in August 2025 with conspiracy to commit money laundering as part of the Criminal Division's Cyber-Enabled Scam Initiative.

Executive summary

The Justice Department announced that Zheng Zhao, 44, a Chinese national, was arraigned on 23 October 2026 in the Central District of California after being extradited from the Netherlands. He is charged over his alleged role in an international cryptocurrency…

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