A U.S. federal judge sentenced a Chinese citizen to nearly four years in prison for his role in laundering more than $36.9 million linked to a cryptocurrency investment fraud scheme.
This ruling marks a milestone in enforcement as U.S. authorities intensify efforts to dismantle cryptocurrency fraud networks.
Within a $36.9 million cryptocurrency fraud scheme
According to a statement issued by the U.S. Attorney's Office for the Central District of California, Jingliang Su, a 45-year-old Chinese national, was part of an international criminal network. The group defrauded 174 American victims through a fraudulent digital asset investment scheme.
Prosecutors stated that the group reached out to victims via unsolicited messages on social media, phone calls, text messages, and online dating platforms. They gained their trust before presenting fraudulent investment opportunities.
The conspirators used fake websites that closely resembled legitimate cryptocurrency trading platforms and convinced victims to transfer money. It is alleged that the scammers stole money while misleading victims into believing that their investments were increasing in value.
"New investment opportunities may seem intriguing, but they carry a dark side: attracting criminals who, in this case, stole and laundered tens of millions of dollars from their victims," stated Bill Isai.
The operation used sophisticated money laundering infrastructure. Authorities estimate that more than $36.9 million of victims' funds were transferred from U.S. bank accounts controlled by the group to a single account at Deltek Bank in the Bahamas.
Funds were converted to Tether (USDT) and sent to digital wallets controlled by Cambodia. The conspirators in Cambodia then distributed the transferred funds to scams throughout the region.
Authorities revealed that Su had been in federal custody since December 2024. He pleaded guilty in June 2025 to one count related to conspiracy to operate an illegal money transfer business.
On Tuesday, federal judge R. Gary Klausner sentenced Su to 46 months in federal prison. Additionally, the judge ordered him to pay over $26 million in restitution.
Furthermore, eight conspirators pleaded guilty in the case. Among them, José Somariba and Shengxing He were sentenced to 36 and 51 months in prison, respectively.
The method reflects a pattern of 'pig slaughtering' scams. These are long-term frauds where perpetrators first build trust with victims before financially exploiting them. Notably, these types of scams are on the rise.
In October, U.S. prosecutors charged Cambodian Chen Chi with operating a coercive currency fraud scheme known as 'pig slaughtering' that allegedly stole billions from victims worldwide.
In a recent report, Chainalysis noted that high-yield investment programs (HYIPs) and pig slaughter scams remained the dominant categories in terms of volume in 2025. The blockchain analytics firm estimates that frauds and scams across the sector caused losses exceeding $17 billion during the year.