A 44-year-old Chinese national, Zheng Zhao, appeared in federal court in the Central District of California on October 23, 2026, following his extradition from the Netherlands.
Prosecutors allege he participated in a transnational cryptocurrency investment fraud operation run out of scam centers in Cambodia that targeted Americans.
Investigators have identified 174 U.S. victims whose money was allegedly moved through domestic shell companies, foreign bank accounts, and digital wallets as part of the scheme.
According to court filings, the operation began with overseas participants contacting potential victims through unsolicited social media messages, phone calls, text messages, and online dating platforms.
After building rapport, the contacts promoted supposed digital asset investments and directed victims to websites designed to look like legitimate cryptocurrency trading platforms.
Victims transferred funds under the impression they were investing, while the operators later claimed the accounts were growing in value.
In reality, prosecutors say the money was stolen rather than invested.More than $36.9 million in victim funds was transferred from U.S. bank accounts controlled by members of the network to a single account at Deltec Bank in the Bahamas.
Zhao and co-conspirators allegedly arranged for the bank to convert the proceeds into the stablecoin Tether (USDT) and send the tokens to a digital-asset wallet controlled in Cambodia.
From there, associates in Cambodia distributed the USDT to leaders of scam centers across the region.Zhao was charged in August 2025 with conspiracy to commit money laundering.
If convicted, he faces a maximum sentence of 20 years in prison.
A criminal complaint represents only an allegation, and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Eight co-conspirators have already pleaded guilty.
Among them, ShengSheng He and Jingliang Su each admitted to conspiracy to operate an unlicensed money-transmitting business.
He received a sentence of 51 months in prison, while Su received 46 months.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division described the extradition as a warning to those who attempt to defraud Americans from abroad, stating that authorities will pursue defendants worldwide, particularly when they convert stolen funds into cryptocurrency and use foreign institutions to conceal the activity.
First Assistant U.S. Attorney Bill Essayli for the Central District of California noted that as crime has become more global, so has the capacity of law enforcement to locate and bring suspects before U.S. courts.
Special Agent in Charge Todd Bratz of the U.S. Secret Service’s Criminal Investigative Division emphasized the commitment to identifying operators of scam centers, disrupting their financial infrastructure, and holding them accountable.
The case is being investigated by the Secret Service’s Global Investigative Operations Center, with assistance from Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, the State Department’s Diplomatic Security Service, and the U.S. Marshals Service.
The Justice Department’s Office of International Affairs worked with Dutch authorities to secure Zhao’s arrest and extradition.
Prosecutors include Trial Attorney Tamara Livshiz, Acting Assistant Deputy Chief James S. Yoon, and Assistant U.S. Attorneys Nisha Chandran and Alexander Gorin.
The prosecution forms part of the Criminal Division’s Cyber-Enabled Scam Initiative, which focuses on identifying scammers targeting Americans, dismantling their networks, and pursuing those responsible. Officials encourage anyone who believes they have been victimized by digital asset investment fraud to report it at IC3.gov.
