Five Men Plead Guilty in $36.9 Million "Pig Butchering" Crypto Scam Linked to Cambodia
The U.S. Justice Department has secured guilty pleas from five men involved in laundering $36.9 million stolen from victims of fraudulent cryptocurrency investment schemes. The operation, based in Cambodia, targeted U.S. citizens through phone calls, texts, and dating apps, luring them into fake crypto investments with fabricated profit screenshots.
The defendants Joseph Wong (33, Alhambra, CA), Yicheng Zhang (39, China), Jose Somarriba (55, Los Angeles), Shengsheng He (39, La Puente, CA), and Jingliang Su (44, China/Turkey) pleaded guilty to charges including money laundering conspiracy and operating an unlicensed money services business. Wong and Zhang face up to 20 years in prison, while the others face a maximum of five years. Zhang has been in custody since May 2024, and Su since November 2024.
The scheme funneled stolen funds through shell companies and international accounts, including a Deltec Bank account in the Bahamas under the name Axis Digital. The money was converted to the stablecoin USDT and transferred to Cambodia, where it reached scam centers in Sihanoukville, a hub for Chinese-linked criminal activity. He traveled between the U.S. and Phnom Penh to coordinate transfers, while Wong managed a Los Angeles-based network of money launderers.
The case is part of a broader crackdown on "pig butchering" scams, with eight individuals now pleading guilty in this operation. The Justice Department’s investigation, supported by multiple U.S. agencies and Dominican Republic police, follows last month’s designation of Cambodia’s Huione Group as a "primary money laundering concern" for its role in facilitating billions in cyber scam transactions. The UN estimates over 100,000 people in Cambodia have been coerced into participating in such schemes.
Source: https://therecord.media/guilty-pleas-cambodia-cyber-scams
Chainalysis cybersecurity rating report: https://www.rankiteo.com/company/chainalysis
"id": "CHA1768208906",
"linkid": "chainalysis",
"type": "Cyber Attack",
"date": "6/2025",
"severity": "100",
"impact": "6",
"explanation": "Attack threatening the economy of geographical region"{'affected_entities': [{'location': 'United States',
'name': 'U.S. Citizens (Victims)',
'type': 'Individuals'},
{'industry': 'Banking',
'location': 'Bahamas',
'name': 'Deltec Bank',
'type': 'Financial Institution'},
{'name': 'Axis Digital (Shell Company)',
'type': 'Shell Company'},
{'industry': 'Financial Services, Cyber Scam '
'Facilitation',
'location': 'Cambodia',
'name': 'Huione Group',
'type': 'Conglomerate'}],
'attack_vector': 'Social Engineering (Phone Calls, Texts, Dating Apps), Fake '
'Investment Platforms',
'description': 'Five men pleaded guilty to laundering $36.9 million obtained '
'from victims of investment scams perpetrated through centers '
'in Cambodia. The scheme involved fake cryptocurrency '
'investments, where victims were convinced to invest via phone '
'calls, texts, dating apps, and other avenues. The funds were '
'laundered through shell companies, international bank '
'accounts, and crypto wallets.',
'impact': {'financial_loss': '$36.9 million',
'legal_liabilities': 'Potential 20-year prison sentences for money '
'laundering conspiracy, 5-year sentences for '
'operating an unlicensed money services '
'business'},
'investigation_status': 'Ongoing (Eight individuals have pleaded guilty so '
'far)',
'lessons_learned': 'Need for increased awareness of investment scams, '
'verification of cryptocurrency platforms, and '
'international cooperation to combat money laundering '
'schemes.',
'motivation': 'Financial Gain',
'post_incident_analysis': {'corrective_actions': 'Arrests and guilty pleas of '
'key individuals, '
'designation of Huione Group '
'as a money laundering '
'concern, and proposed '
'severing of its access to '
'the U.S. financial system.',
'root_causes': 'Lack of investment verification, '
'social engineering tactics, '
'international money laundering '
'networks, and weak regulatory '
'oversight in certain '
'jurisdictions.'},
'recommendations': 'Enhance public education on investment scams, implement '
'stricter regulations on cryptocurrency transactions, and '
'strengthen cross-border law enforcement collaboration.',
'references': [{'source': 'U.S. Justice Department'},
{'source': 'United Nations'}],
'regulatory_compliance': {'legal_actions': 'Designation of Huione Group as an '
"'institution of primary money "
"laundering concern'",
'regulations_violated': 'Money Laundering Laws, '
'Operating an Unlicensed '
'Money Services Business'},
'response': {'law_enforcement_notified': 'U.S. Justice Department, Police in '
'the Dominican Republic, Multiple '
'U.S. Agencies'},
'threat_actor': 'International Crime Syndicate (Cambodia-based Scam Centers, '
'U.S.-based Money Launderers)',
'title': 'International Cryptocurrency Investment Scam and Money Laundering '
'Scheme',
'type': 'Investment Scam, Money Laundering, Cryptocurrency Fraud',
'vulnerability_exploited': 'Human Trust, Lack of Investment Verification'}