Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
The Netherlands extradited 44-year-old Chinese citizen Zheng Zhao to the United States on suspicion of involvement in an international cryptocurrency fraud scheme. The scheme affected 174 American victims, with total damages exceeding $36.9 million.
The network operated through fraudulent call centers in Cambodia. Perpetrators contacted residents of the United States via social media, telephone, and online dating services. After gaining trust, the scammers offered potential victims the opportunity to invest in cryptocurrencies.
According to US law enforcement, Zheng Zhao and his accomplices created fake websites that mimicked legitimate cryptocurrency trading platforms. These platforms displayed fictitious results, creating the impression for deceived investors that their profits were growing.
Related Posts
In reality, the scammers appropriated the investors’ funds, investigators established. More than $36.9 million was transferred from US bank accounts controlled by the scammers to an account at Deltec Bank in the Bahamas. The perpetrators converted the funds into dollar-pegged stablecoins Tether (USDT), then laundered the stolen money through shell US companies, sending the funds to a cryptocurrency wallet in Cambodia. From there, USDT was distributed among the organizers of the Cambodian fraud centers.
In August 2025, Zhao was charged with conspiracy to commit money laundering. Following his extradition from the Netherlands, the man appeared before the US District Court for the Central District of California. If found guilty, the suspect faces a maximum penalty of 20 years in prison. Eight participants in the scheme have already pleaded guilty, including ShengSheng He and Jingliang Su. The two confessed to conspiracy to commit unlicensed money transmission. He was sentenced to 51 months in prison, while Su received 46 months.
Recently, 25-year-old Connecticut resident Elmin Redzepagic pleaded guilty to cryptocurrency fraud and defrauding investors of $1.1 million. The scammer squandered the collected funds on gambling.
