Huoxing Finance reports that on October 24, the U.S. Department of Justice announced that on October 23, the U.S. Attorney’s Office for the Central District of California stated that Zheng Zhao, a 44-year-old Chinese national, was extradited from the Netherlands to the United States for allegedly participating in a transnational cryptocurrency investment fraud scheme targeting U.S. citizens and made his initial court appearance that day. Zheng Zhao has been ordered detained and is scheduled to appear again on November 30. If convicted, he faces a maximum sentence of 20 years in federal prison. According to court documents, the fraud network operated from a scam center in Cambodia, contacting U.S. victims through social media, phone calls, text messages, and dating platforms. The perpetrators deceived victims by using counterfeit websites mimicking legitimate cryptocurrency trading platforms to induce investments, falsely claiming that investments would continuously appreciate. The illicit funds were then laundered through U.S. shell companies, international bank accounts, and digital asset wallets. Investigations revealed that over $36.9 million in victim funds were transferred from U.S. bank accounts controlled by the network into a single account at Deltec Bank in the Bahamas. Zheng Zhao and his co-conspirators arranged for the funds to be exchanged into USDT and transferred to digital asset wallets controlled by entities in Cambodia, ultimately distributed to the operators of scam centers in Cambodia and surrounding regions. The scam involved at least 174 confirmed U.S. victims. To date, eight co-conspirators have pleaded guilty. The U.S. Department of Justice emphasized that criminal charges do not imply guilt, and Zheng Zhao is presumed innocent until proven guilty in court.
Chinese man extradited to U.S. over $36.9M crypto fraud scheme
MarsBitShare
Summary
Zheng Zhao, a 44-year-old Chinese national, was extradited from the Netherlands to the United States on October 23, 2026, in connection with a $36.9 million cryptocurrency fraud. The scam, operated from Cambodia, attracted victims through fake platforms and social media, laundering proceeds via U.S. shell companies. Zhao faces up to 20 years in prison if convicted. As liquidity and crypto markets remain under heightened global regulatory scrutiny, the case underscores the importance of cross-border enforcement. The EU’s Markets in Crypto-Assets Regulation (MiCA) may further strengthen oversight of similar schemes. A federal court hearing is scheduled for November 30.
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