Details of the Crypto Laundering Operation

The man, Jingliang Su, a Chinese national, was sentenced by U.S. District Judge R. Gary Klausner. Su is also ordered to pay over $26 million in restitution, according to the U.S. Attorney’s Office for the Central District of California. Prosecutors revealed that Su was part of an international crime network that manipulated victims in the U.S. into transferring funds to accounts controlled by the schemers.

The illicit funds were laundered through U.S. shell companies, digital asset wallets, and global bank accounts. Co-conspirators targeted individuals through texts, calls, and online dating platforms, promoting counterfeit crypto investments using fake websites resembling legitimate trading platforms.

How the Scam Unfolded

Victims were misled into believing their investments were growing, while in reality, their money was being siphoned. More than $36.9 million was channeled to a bank account at Deltec Bank in the Bahamas and subsequently converted to Tether (USDT).

Prosecutors stated, “From there, co-conspirators in Cambodia transferred the USDT to leaders of scam centers across the region.” The government identified 174 victims in the U.S. alone.

Legal Proceedings and Outcomes

In June, Su pleaded guilty to conspiracy to operate an illegal transmitting business. Eight individuals have pleaded guilty in connection to the scam, including Shengsheng He, who received a sentence of over four years in prison.

First Assistant United States Attorney Bill Essayli commented, “New investment opportunities may sound promising, but they attract criminals who, in this case, laundered tens of millions of dollars.” This case serves as a stark reminder of the risks associated with digital-asset investments.

The Block, an independent media outlet, reports on such cases to deliver timely and impactful news about the crypto industry.

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