Suspected Crypto Launderer Extradited to US in $37M Fraud Case

Zhao stands accused of conspiracy to commit money laundering, a charge that carries a maximum 20-year prison sentence. According to court documents, the operation utilized a network of U.S. shell companies and foreign bank accounts, including one at Deltec Bank in the Bahamas, to convert stolen victim capital into USDT. These digital assets were subsequently transferred to wallets controlled by scam-center operators in Sihanoukville, Cambodia.

The scheme relied on sophisticated social engineering, where perpetrators built trust through dating services and social media before directing victims to fraudulent cryptocurrency platforms. These sites mimicked legitimate exchanges, displaying fabricated investment gains to encourage further deposits. Zhao remains in federal custody, with his arraignment scheduled for November 30.

Eight other co-conspirators have already entered guilty pleas in the ongoing investigation. Among them, ShengSheng He and Jingliang Su received prison terms of 51 and 46 months respectively, with both ordered to pay over $26.8 million in restitution. The case is being led by the Secret Service’s Global Investigative Operations Center, with support from the Department of Homeland Security and the U.S. Marshals Service.