California Man Jailed for Money Laundering $36.9 Million in Global Digital Asset Scam

A California man has been sentenced to 51 months in federal prison for laundering more than $36.9 million stolen from American investors through an international digital asset scam linked to Cambodian fraud centres.

Laundering Victim Funds Through Offshore Accounts

Shengsheng He, 39, of La Puente, California, was ordered to repay nearly $27 million after pleading guilty to conspiring to operate an unlicensed money transmitting business. He co-owned Axis Digital Limited, a Bahamas-based company that played a central role in laundering victim funds.

According to court documents, over $36.9 million was funnelled from US bank accounts into Axis Digital’s account at Deltec Bank in the Bahamas. The funds were converted into the stablecoin Tether (USDT) before being transferred to wallets controlled by fraudsters in Cambodia. From there, the digital assets were redistributed to leaders of regional scam centres.

International Money Laundering Conspiracy

The conspiracy relied on US shell companies, international banking channels, and digital asset wallets to disguise the origins of illicit funds. Co-conspirators targeted victims with unsolicited text messages, social media outreach, and online dating scams, persuading them to invest in fake digital asset opportunities.

Eight other defendants have already pleaded guilty, including Chinese nationals Daren Li and Lu Zhang, who admitted to conspiracy to commit money laundering. Axis Digital co-founder Jose Somarriba and director Jingliang Su also confessed to operating an unlicensed money transmitting business.

Enforcement Against Global Laundering Networks

The case was investigated by the US Secret Service’s Global Investigative Operations Center, with support from Homeland Security Investigations, Customs and Border Protection, the State Department, Dominican National Police, and the US Marshals Service.

The Justice Department emphasised that the case demonstrates how professional money launderers exploit cryptocurrency and offshore structures to conceal stolen funds. Since 2020, cybercrime prosecutions have led to over 180 convictions and more than $350 million in recovered assets.

Read the press release here.