Crypto Scam Ring Members Plead Guilty in $36.9M Fraud Targeting Americans

Jimmy Aki
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Five men have admitted to laundering $36.9 million stolen from U.S. victims in a sophisticated crypto scam scheme tied to Cambodia.

According to the U.S. Department of Justice (DoJ), the defendants—Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng He, and Jingliang Su—operated across the U.S., Spain, China, and Turkey, using social media, text messages, and dating apps to ensnare victims.

Cambodia Continues to Reign as Money Laundering Hub

Unlike typical cybercrimes, this scam relied on psychological manipulation rather than hacking, according to the press release from the DoJ.

Posing as trustworthy contacts, the fraudsters slowly built relationships before promoting fake crypto investments. Victims saw fabricated returns on their screens, unaware their money was being stolen.

The stolen funds flowed into a single account at Deltec Bank in the Bahamas, registered under Axis Digital Limited.

From there, the money was converted into USDT (Tether) and transferred to crypto wallets controlled by criminals in Cambodia, particularly in Sihanoukville, a notorious hub for cybercrime.

Each defendant had a distinct role.

Somarriba and He established Axis Digital and opened the Deltec account, while Su assisted with currency conversions and transfers.

Wong operated a Los Angeles-based laundering network, using shell companies to move money overseas. Zhang managed two bank accounts that processed funds stolen from others.

This case highlights Cambodia’s growing reputation as a haven for financial crime. In early May, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) restricted Huione Group’s access to the U.S financial system.

Investigators linked the Cambodian conglomerate to $4 billion in illegal transactions since 2021, calling it a key marketplace for criminals targeting Americans.

While authorities dismantled this operation, Cambodia’s entrenched cybercrime networks suggest similar scams will persist.

Crypto Scam Enforcement Escalates Outside U.S.

The U.S is not alone in its clampdown on crypto criminals. Countries around the world are stepping up enforcement.

Australia is one of them. Earlier this month, AUSTRAC, the nation’s financial intelligence agency, imposed a A$5,000 ($3,250) cap on crypto ATM transactions.

Users must complete stricter ID checks and face real-time monitoring. ATMs will also display scam warnings before a transaction is completed. It directly responds to the increase in crypto fraud cases affecting Australians.

On May 28, the Australian Securities and Investments Commission (ASIC) filed a lawsuit against Liang Guo, a former director of Blockchain Global.

The agency claims Guo mishandled more than $20 million in customer funds during the collapse of the ACX Exchange. Poor financial records. Mismanagement. Another failed platform that left investors with nothing.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.