US Court Hands Chinese National Nearly 4-Year Sentence in Landmark $37M Crypto Fraud Case

Another crypto scam hits the courtroom—and this one's got a price tag of $37 million.

The Gavel Drops on Digital Deception

A federal judge just sentenced the mastermind behind a sprawling cryptocurrency fraud scheme to nearly four years behind bars. The case centered on a sophisticated operation that siphoned tens of millions from unsuspecting investors, promising sky-high returns that never materialized.

Following the Fraudulent Footprints

Investigators traced a complex web of transactions across multiple blockchain networks. The scheme relied on classic pump-and-dump tactics wrapped in a shiny, tech-forward package—proving that even in the decentralized world, old-school greed still leaves a paper trail. Authorities froze several wallets linked to the operation, recovering a fraction of the stolen funds.

Regulatory Ripples

This sentencing sends a clear signal to bad actors: cross-border crypto crime carries real-world consequences. It's a win for regulators playing a global game of whack-a-mole with digital asset fraud. Expect more scrutiny on platforms facilitating large, opaque transfers—because when millions vanish, someone eventually asks questions.

The takeaway? In crypto, if an offer sounds too good to be true, it probably is—and might just land you a multi-year vacation at a federal facility. Just another reminder that in the race for decentralized finance, some are still running the oldest con in the book.

Romance Scams and Fake Trading Platforms Trap Victims

The fraud began with overseas co-conspirators contacting U.S. victims through unsolicited social media interactions, telephone calls, text messages, and online dating services.

According to DOJ, a U.S. court sentenced Chinese national Jingliang Su to 46 months in prison for laundering over $36.9 million from a crypto investment scam that targeted 174 U.S. victims. Su helped MOVE funds from fake trading platforms, converting them into USDT and…

After gaining their targets’ trust, the scammers promoted fraudulent digital asset investments that appeared legitimate.

Co-conspirators created fake websites that resembled legitimate cryptocurrency trading platforms and convinced victims to send funds to these counterfeit sites.

The scammers WOULD then falsely inform victims that their investments were appreciating in value, when in fact the money had already been stolen.

“This defendant and his co-conspirators scammed 174 Americans out of their hard-earned money,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.

“In the digital age, criminals have found new ways to weaponize the internet for fraud.”

$37M Laundered Through Bahamas to Cambodia

The stolen funds followed a carefully orchestrated path designed to obscure their criminal origins.

More than $36.9 million in victim funds were transferred from U.S. bank accounts controlled by co-conspirators to a single account at Deltec Bank in the Bahamas.

Su and other co-conspirators then directed Deltec Bank to convert the victim funds into the stablecoin Tether (USDT) and transfer the converted cryptocurrency to a digital asset wallet controlled in Cambodia.

From there, Cambodian-based co-conspirators distributed the USDT to leaders of scam centers throughout the region.

“New investment opportunities may sound intriguing, but they have a dark side: attracting criminals who, in this case, stole and then laundered tens of millions of dollars from their victims,” said First Assistant United States Attorney Bill Essayli.

“I encourage the investing public to be cautious. An ounce of prevention is worth a pound of cure.”

Eight Defendants Sentenced as Crackdown Intensifies

Su has been in federal custody since December 2024 and is one of eight co-conspirators who have pleaded guilty so far.

Jose Somarriba and ShengSheng He each pleaded guilty to conspiracy to operate an unlicensed money transmitting business, 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

The sentencing is the latest outcome of the Criminal Division’s ongoing work to investigate, disrupt, and bring to justice individuals who facilitate scam center operations worldwide.

DOJ’s Broader War on Crypto Crime

Su’s case arrives amid intensifying federal enforcement against cryptocurrency-related fraud.

Just one day earlier, the US Department of Justice completed the forfeiture of more than $400 million in assets tied to Helix, a darknet cryptocurrency mixer used to launder proceeds 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 accused 265 defendants of a cumulative alleged loss in fraud cases exceeding $16 billion, nearly twice the amount reported the previous year.

The DOJ noted that cryptocurrency is increasingly becoming a preferred payment rail, laundering mechanism, and asset category for illicit funds.

The Criminal Division plans to leverage its network of International Computer Hacking and Intellectual Property prosecutors strategically posted worldwide to coordinate with foreign law enforcement partners.

Since 2020, the Computer Crime and Intellectual Property Section has secured convictions of more than 180 cybercriminals and court orders for the return of over $350 million in victim funds.