Chinese National Extradited for Alleged Role in Multimillion-Dollar Cryptocurrency Scam Targeting U.S. Citizens

Zheng Zhao, 44, a Chinese national, was arraigned today in the Central District of California after being extradited from the Netherlands for his alleged role in an international cryptocurrency investment conspiracy carried out from scam centers in the Kingdom of Cambodia that targeted U.S. citizens. Ultimately, the government was able to identify 174 U.S. victims.

"This extradition should be a lesson to all those who seek to exploit vulnerable Americans from overseas," said Assistant Attorney General A. Tysen Duva of the Justice Department's Criminal Division. "We will pursue charged defendants anywhere in the world, especially those who are alleged to have stolen money, converted it to cryptocurrency, and used foreign financial institutions in the process to try to hide and obfuscate their crimes. Wherever you are, we have the reach to find you."

"As crime has globalized, so has law enforcement's ability to locate and catch criminals," said First Assistant U.S. Attorney Bill Essayli for the Central District of California. "When innocent Americans are harmed by cybercriminals and their enablers, we and our partners around the globe will relentlessly ensure they face justice in a U.S. courtroom."

"Today's arraignment demonstrates our collective commitment to pursuing transnational criminal networks that exploit the American people," said Special Agent in Charge Todd Bratz of the U.S. Secret Service (USSS) Criminal Investigative Division. "This case should serve as a warning to scammers in every corner of the world: there is nowhere to hide. Secret Service investigators and our law enforcement partners remain unwavering in their commitment to identify those who operate scam centers, disrupt their financial infrastructure, and bring them to justice."

According to court documents, Zhao was allegedly part of an international criminal network that induced U.S. victims to transfer funds to accounts controlled by co-conspirators, who then laundered victim money through U.S. shell companies, international bank accounts, and digital asset wallets. The cycle of the scheme began when overseas co-conspirators contacted U.S. victims via unsolicited social media interactions, telephone calls, text messages, and online dating services to gain the victims' trust. The co-conspirators promoted fraudulent digital asset investments to the victims. The co-conspirators created fake websites that resembled real cryptocurrency trading platforms and convinced victims to send funds through the fake websites for investments.

The scammers would then tell the victims that their investments were appreciating in value when, in fact, the scammers had stolen the victims' money. More than $36.9 million in victim funds were transferred from U.S. bank accounts controlled by the co-conspirators to a single account at Deltec Bank in the Bahamas. Zhao and other co-conspirators arranged for Deltec Bank to convert victim funds to the stablecoin Tether (USDT) and to transfer the converted funds to a digital asset wallet controlled in Cambodia. From there, co-conspirators in Cambodia transferred the USDT to the leaders of scam centers throughout the region.

In August 2025, Zhao was charged with conspiracy to commit money laundering. If convicted, he faces a maximum penalty of 20 years in prison.

Eight co-conspirators have pleaded guilty so far, including ShengSheng He and Jingliang Su. He and Su each pleaded guilty to conspiracy to operate an unlicensed money transmitting business and were sentenced to 51 months and 46 months in prison, respectively.

USSS's Global Investigative Operations Center is investigating the case. The Homeland Security Investigations' El Camino Real Financial Crimes Task Force, Customs and Border Protection's National Targeting Center, U.S. Department of State's Diplomatic Security Service, and U.S. Marshals Service provided valuable assistance. The Justice Department's Office of International Affairs worked closely with Dutch authorities to secure the arrest and extradition of Zhao and provided significant assistance throughout the investigation. The United States sincerely thank Dutch authorities for their assistance.

Trial Attorney Tamara Livshiz of the Criminal Division's White Collar and Corporate Enforcement Section, Acting Assistant Deputy Chief James S. Yoon of the Criminal Division's Computer Crime and Intellectual Property Section (CCIPS), and Assistant U.S. Attorneys Nisha Chandran and Alexander Gorin for the Central District of California are prosecuting the case. The Justice Department's Office of International Affairs worked closely with Dutch authorities to secure the arrest and extradition of Zhao and provided significant assistance throughout the investigation. The United States sincerely thanks Dutch authorities for their assistance.

CCIPS investigates and prosecutes cybercrime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cybercriminals and court orders for the return of over $350 million in victim funds.

This case is part of efforts being undertaken by the Criminal Division's Cyber-Enabled Scam Initiative (CSI). The CSI is a dedicated team of prosecutors built to find scammers who prey on Americans, disrupt their networks, and hold them accountable. CSI coordinates across the Criminal Division's Sections, bringing together prosecutors and subject matter experts in complex frauds and investment schemes, cybercrimes and dismantling cyber infrastructure, online child exploitation, international evidence gathering and extradition, overseas prosecutorial development and assistance, and financial tracing and asset forfeiture.

If you or someone you know is a victim of a digital asset investment fraud, report it to IC3.gov.

A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.