Overview
A Chinese national, Zhen Zhao, 44, was arraigned in California after being extradited from the Netherlands. He is accused of helping launder proceeds of a cryptocurrency investment scam that stole nearly $37 million from 174 victims in the United States.
The Scheme
Prosecutors say Zhao worked with accomplices in the US and Cambodia on a "pig butchering" (romance baiting) operation. Victims were approached by text message, social media, phone calls, and dating sites, then steered to fake websites imitating real crypto trading platforms.
Over $36.9 million moved from US bank accounts to a Deltec Bank account in the Bahamas opened under the name Axis Digital Limited. The funds were converted to Tether (USDT), sent to a wallet controlled in Cambodia, and passed on to leaders of regional scam centers.
Charges and Status
- Charged in August 2025 with conspiracy to commit money laundering; maximum penalty is 20 years in prison.
- Eight accomplices have pleaded guilty; two have been sentenced to 51 and 46 months.
Context
The FBI's 2025 Internet Crime Report lists $8.6 billion in investment scam losses in 2025, up from $6.5 billion in 2024.
Recommendations
- Treat unsolicited investment advice from online contacts as a red flag.
- Verify trading platforms independently before sending funds.
- Report losses to IC3 and your bank immediately; fast reports improve recovery odds.