Crypto scammers plead guilty to $37M scheme targeting Americans

Five men have pleaded guilty to their roles in a $36.9 million international cryptocurrency scam that targeted Americans, with the stolen funds ultimately sent to a crypto scam center in Cambodia.

The scammers used shell companies and U.S. bank accounts to collect victims' money, which was then converted into Tether (USDT) and transferred to a crypto wallet controlled in Cambodia.

The defendants—Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng He, and Jingliang Su—gained victims’ trust through social media, messaging platforms etc, falsely promising high returns on crypto investments while actually stealing the funds.

The laundering operation involved founding a shell company, opening a bank account in the Bahamas, and wiring funds internationally before sending them to Cambodia.

Zhang and Wong face up to 20 years in prison for money laundering conspiracy, while the other three men could receive up to five years for conspiracy to operate an unlicensed money services business. This case is part of a broader U.S. crackdown on crypto scams and money laundering rings linked to a group in North Korea operating out of Asia.

Eight people have now pleaded guilty in connection with this scam, highlighting ongoing efforts to combat cryptocurrency fraud targeting Americans.

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