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A Chinese citizen has been sentenced to 46 months (almost 4 years) in federal prison for his involvement in laundering more than $36.9 million stolen from American victims through an elaborate cryptocurrency investment scheme run from Cambodia.
As per a DOJ announcement, Jingliang Su, 45, was also mandated to pay $26,867,242 in restitution following his guilty plea to conspiracy charges related to running an illegal money transmitting business.
U.S. District Judge R. Gary Klausner imposed the sentence, signifying another achievement in the Justice Department’s increasing efforts against international scam operations.
Romance Scams and Phony Trading Platforms Deceive Victims
The scheme commenced with overseas accomplices reaching out to U.S. victims through unsolicited social media messages, phone calls, text messages, and online dating platforms.
According to the DOJ, a U.S. court sentenced Chinese national Jingliang Su to 46 months in prison for laundering over $36.9 million from a cryptocurrency investment scheme that targeted 174 U.S. victims. Su assisted in transferring funds from fraudulent trading platforms, converting them into USDT and…
— Wu Blockchain (@WuBlockchain) January 31, 2026
After establishing trust with their victims, the fraudsters promoted fake digital asset investments that seemed credible.
Co-conspirators created bogus websites mimicking legitimate cryptocurrency trading platforms and persuaded victims to send money to these fraudulent sites.
The scammers would then misleadingly inform victims that their investments were increasing in value, when in reality, the funds had already been misappropriated.
“This defendant and his accomplices defrauded 174 Americans of their hard-earned money,” stated Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.
“In the digital era, criminals have discovered new methods to exploit the internet for fraudulent purposes.”
$37M Laundered from the Bahamas to Cambodia
The misappropriated funds followed a meticulously planned route aimed at concealing their illicit origins.
Over $36.9 million in victim money was moved from U.S. bank accounts controlled by co-conspirators to a single account at Deltec Bank in the Bahamas.
Su and other accomplices then instructed Deltec Bank to convert the victim funds into the stablecoin Tether (USDT) and transfer the converted currency to a digital asset wallet managed in Cambodia.
Source: TRM Labs
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From there, co-conspirators based in Cambodia distributed the USDT to leaders of scam centers across the area.
“While new investment opportunities may seem appealing, they also have a sinister side: attracting criminals who, in this instance, stole and laundered tens of millions of dollars from their victims,” remarked First Assistant United States Attorney Bill Essayli.
“I urge the investing public to exercise caution. A small measure of prevention is worth a great deal of remedy.”
Eight Defendants Sentenced as Crackdown Grows
Su has been in federal custody since December 2024 and is one of eight co-conspirators who have pleaded guilty to date.
Jose Somarriba and ShengSheng He each pleaded guilty to conspiracy to run an unlicensed money transmitting operation, receiving sentences of 36 months and 51 months in prison, respectively.
California man gets 51 months for laundering $37M in Cambodia crypto scams, converting victim funds to Tether through Bahamas company.#Crypto #Scamhttps://t.co/AUfPEncnGb
— Cryptonews.com (@cryptonews) September 9, 2025
California man gets 51 months for laundering $37M in Cambodia crypto scams, converting victim funds to Tether through Bahamas company.#Crypto #Scamhttps://t.co/AUfPEncnGbThis sentencing is the latest result of the Criminal Division’s ongoing efforts to investigate, disrupt, and hold accountable those who facilitate scam operations globally.
DOJ’s Broader Campaign Against Cryptocurrency Crime
Su’s case emerges amid heightened federal enforcement against fraud involving cryptocurrency.
Just one day prior, the U.S. Department of Justice concluded the forfeiture of over $400 million in assets related to Helix, a darknet cryptocurrency mixer used to launder funds from illegal online marketplaces between 2014 and 2017.
According to the DOJ Criminal Division Fraud Section 2025 Year in Review, published on January 23, prosecutors charged 265 defendants with a total alleged loss in fraud cases surpassing $16 billion, nearly double the amount reported the previous year.
Source: DOJ
The DOJ indicated that cryptocurrency is increasingly becoming a favored method for payment, laundering, and holding illicit funds.
The Criminal Division intends to utilize its network of International Computer Hacking and Intellectual Property prosecutors strategically positioned globally to collaborate with foreign law enforcement entities.
Since 2020, the Computer Crime and Intellectual Property Section has achieved convictions of over 180 cybercriminals and secured court orders for the recovery of more than $350 million in victim funds.
The post US Court Sentences Chinese National to Nearly 4 Years for $37M Crypto Fraud appeared first on Cryptonews.
