International Cryptocurrency Scam Ring Launders $37 Million in U.S. Victim Funds
Five men from China, the U.S., and Turkey have pleaded guilty to laundering nearly $37 million stolen from U.S. victims in a global cryptocurrency investment scam operation based in Cambodia. The scheme, which targeted individuals through unsolicited social media messages, phone calls, and online dating platforms, tricked victims into investing in fraudulent digital assets by falsely claiming their funds were growing in value.
The stolen money—totaling $36.9 million—was funneled from U.S. bank accounts to a Deltec Bank account in the Bahamas under the name Axis Digital Limited. The defendants, including Joseph Wong (Alhambra, CA), Yicheng Zhang (China), Jose Somarriba (Los Angeles), Shengsheng He (La Puente, CA), and Jingliang Su (China/Turkey), used shell companies, U.S. bank accounts, and cryptocurrency wallets to launder the funds. Wong led a Los Angeles-based laundering network, while Zhang managed additional U.S. accounts. Somarriba and He established Axis Digital and the Deltec Bank account, with Su later joining to handle cryptocurrency conversions.
The stolen funds were converted into Tether (USDT) and transferred to a digital wallet in Cambodia, where accomplices distributed them to regional scam operators. Zhang has been in custody since May 2024, and Su was arrested in November 2024. Both, along with Wong, pleaded guilty to money laundering conspiracy, facing up to 20 years in prison. Zhang, Somarriba, and Su also admitted to conspiracy to operate an unlicensed money services business, carrying a maximum five-year sentence.
Eight co-conspirators have now pleaded guilty, including Daren Li and Yicheng Zhang, arrested in April 2024 for allegedly laundering at least $73 million in similar "pig butchering" scams—fraud tactics that combine romance baiting and fake investment schemes. In December 2024, the U.S. Justice Department charged four more suspects in an $80 million pig butchering operation.
The FBI’s 2024 Internet Crime Report highlighted a surge in investment scams, with losses exceeding $6.5 billion in 2023—up from $4.57 billion the previous year.
Deltec cybersecurity rating report: https://www.rankiteo.com/company/deltec
Axis Digital cybersecurity rating report: https://www.rankiteo.com/company/axisdigitalpro
"id": "DELAXI1766987209",
"linkid": "deltec, axisdigitalpro",
"type": "Cyber Attack",
"date": "12/2025",
"severity": "60",
"impact": "2",
"explanation": "Attack limited on finance or reputation"{'affected_entities': [{'customers_affected': 'Multiple (exact number not '
'specified)',
'location': 'United States',
'name': 'U.S. Victims',
'type': 'Individuals'}],
'attack_vector': ['Social Media',
'Phone Calls',
'Text Messages',
'Online Dating Services'],
'data_breach': {'data_exfiltration': 'Yes (Funds transferred to international '
'accounts and cryptocurrency wallets)',
'sensitivity_of_data': 'High',
'type_of_data_compromised': 'Financial Data (Bank Account '
'Details, Cryptocurrency '
'Transactions)'},
'description': 'Five men from China, the United States, and Turkey pleaded '
'guilty to their involvement in an international crime ring '
'and laundering nearly $37 million stolen from U.S. victims in '
'cryptocurrency investment scams carried out from Cambodia. '
'Accomplices living abroad reached out to targets in the '
'United States via unsolicited social media, phone calls, text '
'messages, and online dating services to gain their trust, '
'promoting fraudulent digital asset investments and falsely '
"claiming that the victims' funds' value increased after they "
'tricked them into investing, when, in fact, their money was '
'stolen.',
'impact': {'financial_loss': '$36.9 million',
'legal_liabilities': 'Potential fines and criminal penalties'},
'initial_access_broker': {'entry_point': ['Social Media',
'Phone Calls',
'Text Messages',
'Online Dating Services']},
'investigation_status': 'Ongoing (Eight co-conspirators pleaded guilty, '
'others charged)',
'lessons_learned': 'Increased awareness of social engineering scams, '
'particularly cryptocurrency investment fraud (pig '
'butchering/romance baiting). Need for stricter monitoring '
'of international financial transactions and shell '
'companies used for money laundering.',
'motivation': 'Financial Gain',
'post_incident_analysis': {'corrective_actions': 'Arrests and charges against '
'perpetrators, potential '
'policy changes to '
'strengthen financial '
'transaction monitoring',
'root_causes': 'Lack of awareness among victims, '
'exploitation of trust through '
'social engineering, use of shell '
'companies and international bank '
'accounts to launder funds, weak '
'regulatory oversight of '
'cryptocurrency transactions'},
'recommendations': ['Enhance public education on recognizing social '
'engineering scams',
'Implement stricter KYC (Know Your Customer) and AML '
'(Anti-Money Laundering) measures for cryptocurrency '
'transactions',
'Improve international cooperation to track and dismantle '
'transnational crime rings',
'Monitor and regulate shell companies used for illicit '
'financial activities'],
'references': [{'source': 'U.S. Justice Department'},
{'source': "FBI's 2024 Internet Crime Report",
'url': 'https://www.ic3.gov/Media/PDF/AnnualReport/2024_IC3Report.pdf'}],
'regulatory_compliance': {'legal_actions': 'Criminal charges (Money '
'Laundering Conspiracy, Operating '
'an Unlicensed Money Services '
'Business)',
'regulations_violated': ['Money Laundering Laws',
'Unlicensed Money Services '
'Business']},
'response': {'law_enforcement_notified': 'Yes (FBI, U.S. Justice Department)'},
'threat_actor': ['Joseph Wong',
'Yicheng Zhang',
'Jose Somarriba',
'Shengsheng He',
'Jingliang Su',
'Daren Li',
'Unnamed accomplices in Cambodia'],
'title': 'International Cryptocurrency Investment Scam and Money Laundering '
'Scheme',
'type': 'Cryptocurrency Investment Scam (Pig Butchering/Romance Baiting)',
'vulnerability_exploited': 'Social Engineering'}