Five individuals have pleaded guilty in connection with a $36.9 million international crypto scam that targeted American victims and funneled stolen funds to a fraudulent crypto operation in Cambodia, according to a Monday statement from the U.S. Attorney’s Office for the Central District of California. The scam exploited social engineering tactics, with perpetrators reaching victims through dating apps, messaging platforms, and social media. After gaining trust, scammers convinced victims to invest in what they falsely claimed were lucrative cryptocurrency opportunities. In reality, the funds were never invested and were instead laundered through shell companies and overseas bank accounts, eventually converted into Tether (USDT) and sent to a wallet controlled in Cambodia. Inside the Laundering Operation Authorities revealed that the crypto laundering ring involved a well-organized structure operating across multiple countries, including the United States, China, Spain, and Turkey. Defendants Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng He, and Jingliang Su played various roles. Somarriba and He established a shell company named Axis Digital and opened a bank account at Deltec Bank in the Bahamas to receive the scammed funds. Su, working as a director, helped convert the proceeds into USDT. Wong led a money laundering network that wired stolen money to overseas accounts, while Zhang managed two U.S. bank accounts used to process the funds. Ultimately, the stolen money ended up in the hands of leaders operating the scam centers in Cambodia. Treasury Targets Larger Scam Networks Wong and Zhang, who both pleaded guilty to money laundering conspiracy charges, face sentences of up to 20 years in federal prison. The other three defendants each face up to five years for conspiracy to operate an unlicensed money services business. Su is set to be sentenced on November 17. To date, eight individuals have pleaded guilty in the broader investigation, including Daren Li and Lu Zhang last year. This crackdown coincides with a broader effort by the U.S. Treasury Department to sever financial ties with Cambodia-based Huione Group, which officials allege has facilitated cryptocurrency laundering for North Korea’s state-sponsored Lazarus Group . On May 1, the Treasury’s Financial Crimes Enforcement Network moved to block U.S. financial institutions from transacting with the firm. Though Telegram shut down one of Huione’s key affiliates , Haowang Guarantee, crypto forensics firm TRM Labs has found signs that the laundering operation may have resumed under a different name—suggesting the fight against crypto crime is far from over. The post Five Men Plead Guilty in $36.9M Crypto Scam Linked to Cambodia-Based Operation appeared first on TheCoinrise.com .
