A resident of La Puente, California, Shengsheng He, was sentenced to 51 months (over 4 years) in federal prison for participating in a scheme to launder nearly $37 million stolen from American investors through a global crypto scam. This was reported by the U.S. Department of Justice (DOJ) on September 8, 2025. He is also required to pay $26.9 million in restitution to the victims.
The scheme, known as "pig butchering," was run from fraud centers in Cambodia. The perpetrators contacted victims through social media and messaging platforms, promising high returns on investments in digital assets. Instead, the funds were transferred to accounts controlled by co-conspirators. He, as a co-owner of Axis Digital Limited in the Bahamas, received victim funds into an account at Deltec Bank, converted them into the stablecoin Tether (USDT), and sent them to the scammers' wallets in Cambodia. Overall, the network laundered over $73 million through shell companies in the US and international banks.
He pleaded guilty in April 2025 to conspiracy to operate an unlicensed money transmitting business. Eight co-defendants have already pleaded guilty, including Darren Lee (China/Saint Kitts and Nevis) and Lu Zhang (China). The DOJ emphasizes that this is part of a global campaign against crypto fraud: since 2020, over 180 cybercriminals have been convicted, and $350 million has been returned to victims. Schemes use crypto to cover their tracks, but law enforcement is actively tracking transactions on the blockchain.
This case highlights the risks of crypto investments: victims lost their savings believing in legitimate projects. Experts advise verifying platforms and avoiding unsolicited offers. With the rise of the crypto market (Bitcoin over $100,000), regulators are tightening oversight to protect investors from such frauds.
#CryptoLaundering #DOJCrackdown #MoneyLaundering #Cryptoscam #PigButchering #BitcoinFraud
Subscribe to #MiningUpdates for the latest news on mining and crypto!
