A Chinese national accused of helping move millions of dollars stolen through fraudulent cryptocurrency investments has been extradited from the Netherlands to the United States. Federal prosecutors allege that the suspect participated in an international operation linked to scam centers in Cambodia, with investigators identifying 174 American victims.
Zheng Zhao, 44, appeared in federal court in Los Angeles on October 23, 2026, following his extradition. He was charged in August 2025 with conspiracy to commit money laundering and faces a maximum sentence of 20 years in prison if convicted.
According to the US Department of Justice, the criminal network used social media, dating websites, text messages, and telephone calls to approach potential victims. Rather than immediately requesting money, participants allegedly spent time gaining their targets’ trust before introducing what appeared to be profitable cryptocurrency investment opportunities.
Victims were directed to websites designed to resemble legitimate digital asset trading platforms. These websites displayed fabricated account balances and investment gains, creating the impression that deposited funds were increasing in value. Prosecutors say the money had actually been stolen.
Investigators traced more than $36.9 million from US bank accounts controlled by alleged conspirators to a single account at Deltec Bank in the Bahamas. The network reportedly used American shell companies and international financial accounts to move the proceeds.
Zhao and other participants allegedly arranged for the funds to be converted into Tether’s USDT stablecoin. The cryptocurrency was then transferred to a digital wallet controlled in Cambodia before being distributed to individuals operating scam centers across the region.
The case has already resulted in eight guilty pleas from other participants. Among them, ShengSheng He received a 51-month prison sentence, while Jingliang Su was sentenced to 46 months. Both pleaded guilty to conspiracy to operate an unlicensed money transmitting business.