Chinese National Extradited From Netherlands in Alleged Cryptocurrency Scam Case

A Chinese national was arraigned in the Central District of California after being extradited from the Netherlands for his alleged role in an international cryptocurrency investment conspiracy that targeted U.S. citizens, the Justice Department said on October 23, 2026.

Zheng Zhao, 44, was charged in August 2025 with conspiracy to commit money laundering. If convicted, he faces a maximum penalty of 20 years in prison, according to the department. The government identified 174 U.S. victims.

According to court documents cited by the department, co-conspirators operating from scam centers in Cambodia allegedly contacted victims through social media, phone calls, text messages and online dating services, then promoted fraudulent digital asset investments through fake websites resembling real trading platforms. The department said more than $36.9 million in victim funds was transferred to a single account at Deltec Bank in the Bahamas. Zhao and others allegedly arranged for the bank to convert the funds to the stablecoin Tether and send them to a digital wallet controlled in Cambodia.

Eight co-conspirators have pleaded guilty, the department said, including two who were sentenced to 51 and 46 months in prison for conspiracy to operate an unlicensed money transmitting business.

The U.S. Secret Service is investigating the case. The department noted that a criminal complaint is an allegation and that defendants are presumed innocent until proven guilty.

Source: U.S. Department of Justice.

Originally published by True News: https://truenews.bagleyenterprises.net/stories/397