$37 Million Global Crypto Scam: 5 Men Admit Guilt in U.S. Fraud Case
Recently a massive crypto scam happening in the US has come to light, targeting American citizens and manipulating them into investing in their scheme. This was a $37 Million worth Scam, where 5 men have pleaded guilty to being a part of the international crypto scam scheme that stole from American victims and sent the stolen funds to Cambodia.
What is International Crypto Scam And Why Are They Targeting Americans?
A fake investment scheme or fraud involving cryptocurrency to deceive victims and steal from them. But instead of stealing from nearby people, they use the internet, apps, and cryptocurrency to scam people from all over the world. These schemes are run by people or groups from one country but target other countries for their crypto scam.
The US is one of the wealthiest countries globally, where comparatively more people are open to trading and exploring cryptocurrency but don’t fully understand it, which makes them an easy target for scammers. US citizens have higher savings and investments and trust online platforms, and scams are harder to trace internationally.
The Beginnings of The $37M Crypto Scam Con: Gaining Trust Online
"Scammers used dummy corporations and US bank accounts to receive money from the victims, converted them into Tether USDT ($1.00), and sent it to a crypto wallet controlled in Cambodia," said by the US Attorney’s Office for the Central District of California on Monday.
The Scammers – Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng He, and Jingliang Su – created fake social media accounts, dating apps, messengers, etc. to contact victims and trick them into investing in their crypto investment scheme. The defendants were scattered throughout China, Spain, the US, and Turkey.
Source: US Justice Department Criminal Division
"After gaining victims' trust, scammers would tell them that their investments were appreciating in value and making money. Instead, it was all stolen and wasn’t invested," said by the Department of Justice.
Inside The Crypto Scam: How The Fradulent Network Worked
The crypto scam operation was organized by five men (Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng He, and Jingliang Su), and each of them played a significant role in the whole operation from planning to moving and laundering the stolen money.
A shell company named "AXIS DIGITAL" was formed by Jose Somarriba and Shengsheng He, and to receive victims' funds they opened a Deltec Bank account in the Bahamas. Meanwhile, Yicheng Zhang managed two US banks that helped process the illicit money. Joseph Wong ran a money laundering network for transferring the stolen funds between different international bank accounts. Jingliang Su worked as a director who handled converting the stolen money into cryptocurrency and sending it overseas to scam centers in Cambodia.
The Legal Charges For The Fraudulent Activity
Joseph Wong, who has been in custody since May 2024, and Yicheng Zhang pleaded guilty and could face up to 20 years in prison for money laundering charges.
The other three – Jose Somarriba, Shengsheng He, and Jingliang Su – pleaded guilty to running an illegal money business and could face up to 5 years in prison each.
Moreover, Jingliang Su has a sentencing hearing scheduled for Nov. 17 and has been in custody since November 2024.
So far, eight people have admitted to crimes connected to this crypto scam, including Daren Li and Lu Zhang, who pleaded guilty last year for money laundering charges.
The U.S. Crackdown: Bigger Efforts To Fight Crypto Crime
A bigger effort is a wider campaign by U.S. authorities to combat global crypto-related crime and money laundering, especially based in Asia. One group the U.S. is focused on is North Korea’s Lazarus Group, which is known for stealing money and cryptocurrency worldwide.
U.S. Takes Action Against Cambodian Company Huione Over Crytpo Crime Links
In May 2025, the Treasury proposed banning U.S. banks from doing business with Huione. In addition to accessing America’s banking system, the U.S. Treasury Department is trying to block a Cambodia-based company Huione Group. This company is accused of helping criminals, including North Korea’s state-sponsored Lazarus Group, launder and move stolen cryptocurrency.
"Huione Group has established itself as the ‘marketplace of choice for malicious cyber actors’ like the Lazarus Group, who have ‘stolen billions of dollars from everyday Americans,’" said U.S. Treasury Secretary Scott Bessent at the time.
Lately, an affiliate of Huione called Haowang Guarantee was shut down on Telegram, a messaging app it used to coordinate illegal activities. However, experts believe the group is trying to continue its operations under a new name.
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