US Court Sentences Chinese National to Nearly 4 Years in $37M Crypto Fraud
Crypto journalist
Anas Hasan
Crypto journalist
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A Chinese national has been sentenced to 46 months (almost 4 years) in federal prison for his role in a Cambodia-based crypto investment scam that defrauded US victims of more than $36.9 million.
According to information released by the DOJ, Jingliang Su, 45, was ordered to pay $26,867,242 in restitution after pleading guilty to conspiracy to conduct an illegal money transmission business.
U.S. District Judge R. Gary Klauner handed down the sentence, another victory in the Justice Department's intensifying crackdown on the operations of an international fraud center.
Love scams and fake trading platforms trap victims
The scam began with overseas affiliates contacting American victims through unsolicited social media communications, phone calls, text messages and online dating services.
After gaining the trust of their targets, the fraudsters promote fraudulent digital asset investments that look legitimate.
Co-conspirators created fake websites impersonating legitimate cryptocurrency exchanges and convinced victims to send money to these fake sites.
The scammers falsely inform victims that the money has already been stolen and that their investment is appreciating.
Justice Department Criminal Division Assistant General A. “This defendant and his co-conspirators defrauded 174 Americans of their hard-earned money,” said Tyson Duva.
“In the digital age, criminals have found new ways to exploit the Internet for fraud.”
$37M was taken to Cambodia through the Bahamas
The stolen funds followed a carefully orchestrated route designed to conceal their criminal origins.
More than $36.9 million in victims' money was transferred from US bank accounts controlled by the United Nations to an account at Deltec Bank in the Bahamas.
Su and other co-conspirators ordered Deltec Bank to convert the victim's money into the stablecoin Tether (USDT) and transfer the converted cryptocurrency to a digital asset wallet they controlled in Cambodia.
From there, Cambodia-based co-conspirators distributed USDT to leaders of fraud centers in the region.
“New investment opportunities may seem attractive, but they have a dark side: in this case, attracting criminals to steal tens of millions of dollars from their victims,” said First Assistant US Attorney Bill Isailly.
“I encourage the invested public to exercise caution. An ounce of prevention is worth a pound of cure.”
As the crackdown intensified, eight defendants were sentenced
Su has been in federal prison since December 2024 and is one of eight co-conspirators who have pleaded guilty so far.
Jose Somarriba and Shengsheng each received sentences of 36 months and 51 months respectively, pleading guilty to conspiracy to conduct an unauthorized money transmission business.
The conviction is the latest result of the Crime Division's efforts to investigate, disrupt and prosecute individuals who facilitate the operations of fraud centers worldwide.
DOJ's Widespread War on Crypto Crime
His case comes as federal enforcement is intensifying on cryptocurrency-related scams.
Just one day earlier, the United States Department of Justice Between 2014 and 2017, he ended up acquiring more than $400 million worth of assets that were scrapped with Helix, a darknet cryptocurrency mixer, to disguise proceeds from illegal online marketplaces.
In the DOJ's Criminal Division's Fraud Section of Review Year 2025, published Jan. 23, prosecutors indicted 265 defendants in fraud cases totaling more than $16 billion, nearly double the number from the previous year.
The DOJ noted that cryptocurrency is increasingly becoming the preferred payment channel, distribution method and asset class for illicit funds.
The Criminal Division plans to use a global network of computer hacking and intellectual property prosecutors to coordinate with foreign law enforcement partners.
As of 2020, the Computer Crime and Intellectual Property Division has obtained more than 180 cybercriminal convictions and court orders to recover more than $350 million in victims' money.
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