US extradites Chinese national in $36.9M Cambodia crypto scam

A Chinese national accused of helping launder money from a Cambodia-based crypto investment scam has been extradited to the United States. Zheng Zhao, 44, made his first appearance in federal court in Los Angeles on Friday, Oct. 23, after being sent from the Netherlands, and was ordered detained, the US Attorney's Office for the Central District of California said.

The charge against Zhao

Zhao was charged in August 2025 with conspiracy to commit money laundering, which carries up to 20 years in federal prison. His arraignment is set for Nov. 30 in Los Angeles. A complaint is only an allegation, and he is presumed innocent unless proven guilty.

How the victims were hooked

According to court documents, co-conspirators overseas contacted Americans through unsolicited social media messages, phone calls, texts and dating apps, built trust, then pitched crypto investments. Victims were sent to fake websites made to look like real trading platforms that showed their "investments" growing, while the money had already been taken. It is the pattern often called "pig butchering"; our guide on how to spot crypto scams lists the warning signs.

Where the money went

Prosecutors say more than $36.9 million moved from US bank accounts controlled by the group, including shell companies, into a single account at Deltec Bank in the Bahamas. Zhao and others allegedly had the bank convert the funds into the stablecoin Tether (USDT) and send it to a wallet controlled in Cambodia, from where it was passed on to scam-center bosses across the region. The government has identified 174 US victims.

Who has already pleaded guilty

Eight co-conspirators have pleaded guilty. Two of them, Shengsheng He and Jingliang Su, admitted to conspiring to run an unlicensed money transmitting business and were sentenced to 51 and 46 months in prison respectively.

Why it matters

The case shows how far US agencies will go to reach the money-movers behind Southeast Asian scam compounds, not just the people sending the messages. The Secret Service led the investigation, with help from Homeland Security Investigations, the State Department and Dutch authorities. It follows a broader White House push against crypto scams and recent server seizures by the FBI.