Five Men Plead Guilty in $36.9 Million Crypto Investment Scam with Links to Cambodia

In a significant breakthrough against transnational cyber fraud, five men have pleaded guilty to laundering over $36.9 million stolen through a sprawling digital asset investment scam, orchestrated from scam centres in Cambodia and executed through an elaborate global network.

International Criminal Network Exploited Digital Asset Craze

According to court documents, the defendants were part of an organised conspiracy that targeted US victims with fraudulent cryptocurrency investment schemes. Victims were duped into believing their investments were generating returns, only to discover the funds had been siphoned into a sophisticated laundering operation involving US shell companies, overseas banks, and digital asset wallets.

The accused — Joseph Wong (33, Alhambra, California), Yicheng Zhang (39, China), Jose Somarriba (55, Los Angeles), Shengsheng He (39, La Puente, California), and Jingliang Su (44, China and Turkey) — played key roles in the money laundering process.

Shell Firms, Stablecoins & Bahamian Bank Transfers

The funds were transferred from US bank accounts to a single Deltec Bank account in the Bahamas under the name Axis Digital Limited, a shell company established by Somarriba and He. Alongside Su, they directed the conversion of funds into the stablecoin Tether (USDT), which was then moved to digital wallets operated by Cambodian actors. From there, the stolen crypto was distributed to scam operation leaders across Cambodia, especially in Sihanoukville.

Wong oversaw a network in Los Angeles responsible for registering US shell firms and transferring funds internationally. Zhang operated two US bank accounts to launder proceeds.

Charges & Sentencing Prospects

• Wong and Zhang pleaded guilty to conspiracy to commit money laundering and each face up to 20 years in prison.

• He, Somarriba, and Su pleaded guilty to conspiracy to operate an unlicensed money services business, facing up to five years in prison each.

• Zhang and Su have been in custody since May and November 2024, respectively.

This brings the total number of guilty pleas in the case to eight. Notably, Daren Li, a Chinese-St Kitts and Nevis national, and Lu Zhang, a Chinese national illegally residing in the U.S., were among those previously charged.

A Multi-Agency Effort to Disrupt Global Scam Infrastructure

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

Prosecution is being handled by the Justice Department’s Computer Crime and Intellectual Property Section, the Criminal Division, and the US Attorney’s Office for the Central District of California.

A Wake-Up Call for Crypto Crime Oversight

This case underscores the growing complexity of cross-border digital asset crime and highlights the role of stablecoins and shell firms in laundering illicit wealth. As US authorities continue to coordinate with international partners, this prosecution may serve as a precedent in dismantling crypto-based investment fraud.

Read the full press release here.