Chinese national extradited over alleged $37 million investment scam
Original title: Authorities extradite Chinese national for alleged $37M investment scam
Prosecutors say a Cambodia-linked ring used fake trading sites and moved victim money into Tether.
The Justice Department said Zheng Zhao, 44, was extradited from the Netherlands and arraigned on a conspiracy to commit money laundering charge that carries up to 20 years. Prosecutors allege he and co-conspirators deceived at least 174 U.S. residents out of nearly $37 million through a cryptocurrency investment scheme tied to scam centers in Cambodia. Victims were contacted through social media, calls, texts and dating sites, then sent funds to fake trading sites. Eight co-conspirators previously pleaded guilty.
Unconfirmed: The conduct is alleged; Zhao has been arraigned and has not been convicted in this report.
- Funds allegedly moved from U.S. accounts to Deltec Bank in the Bahamas, then to Tether.
- Shengsheng He and Jingliang Su received 51-month and 46-month sentences.
- Joseph Wong allegedly ran Los Angeles launderers who opened shell-company bank accounts.
- The U.S. Secret Service said the case warns operators of scam centers abroad.
Impact: Nearly $37 million allegedly taken from at least 174 U.S. residents
From the original article
3 min read at cyberscoop.com
Zheng Zhao and his co-conspirators allegedly deceived 174 U. S. residents into sending funds to a globally coordinated fake investment operation with ties to Cambodia.
By Matt Kapko · cyberscoop.com
A short excerpt; the article and its images belong to the publisher. Summary, key facts and assessment above are AI-written from the article and can be wrong.