Fraud and Embezzlement
Crypto Investment Scam Run From Cambodian Scam Centers: Chinese National Extradited From the Netherlands to the US on a Money Laundering Conspiracy Charge
Crypto investment scam with 174 US victims: per the DOJ, over $36.9 million went to a Bahamas bank and was converted to USDT. A 44-year-old was extradited.
In brief
- On 23 October 2026 the US Justice Department announced that a 44-year-old Chinese national, extradited from the Netherlands, had been arraigned in federal court in the Central District of California.
- The charge: conspiracy to commit money laundering. It was filed in August 2025 and carries a maximum sentence of 20 years in prison.
- According to the announcement, a network operating from scam centers in Cambodia lured Americans into crypto investments through fake trading websites. 174 victims in the US have been identified.
- According to the announcement, more than $36.9 million was moved from US accounts to a single account at a bank in the Bahamas, converted into the digital currency USDT and sent to a wallet controlled from Cambodia.
- Status: arraigned after extradition. The suspect is presumed innocent. Eight other co-conspirators have already pleaded guilty, according to the announcement.
How the scam worked, according to the Justice Department
According to the US Justice Department announcement, members of the network approached victims through social media, phone calls, text messages and dating sites. They promoted investments in digital currencies and directed victims to websites that looked like real trading platforms. Victims saw, it is alleged, that their investment was growing, but the money had been stolen (US Department of Justice).
The money trail
According to the announcement, the victims' money passed through US shell companies, international bank accounts and digital wallets. The suspect and his co-conspirators, it is alleged, arranged for a bank in the Bahamas to convert victims' funds into USDT (Tether) and send them to a wallet controlled from Cambodia. From there, according to the announcement, the money went to the leaders of scam centers in the region (US Department of Justice).
According to the announcement, more than $36.9 million was moved from US accounts controlled by the co-conspirators to a single account at the bank in the Bahamas. That figure shows how much the money trail matters in fraud cases: the money leaves ordinary accounts, and only later disappears into a chain of companies, banks and wallets.
The co-conspirators who have pleaded guilty
According to the announcement, eight co-conspirators have already pleaded guilty. Two of them pleaded guilty to conspiracy to operate an unlicensed money transmitting business and were sentenced to 51 and 46 months in prison (US Department of Justice).
The investigation was led by the US Secret Service with help from other agencies, and the Justice Department's Office of International Affairs worked with the Dutch authorities on the arrest and extradition. The announcement does not say when or where the suspect was arrested in the Netherlands.
What is not yet known
Everything above is the prosecution's allegation. The announcement stresses that every defendant is presumed innocent until proven guilty beyond a reasonable doubt. The suspect's response has not been published. We have chosen not to publish his name, because at the time of writing it appeared only in the official announcement and not in major media outlets.
What the case shows
A crypto investment scam almost always starts with personal contact, continues on a website that looks trustworthy, and ends with the money moving quickly abroad. Anyone who has been targeted should keep every detail: usernames, website addresses, transfer confirmations and wallet addresses. These are the points of contact that make it possible to follow the money.
Source: US Department of Justice, press release 26-1258, 23.10.2026.
Further reading: money laundering red flags in a business, and our hidden asset and funds tracing service.
The information in this section is general and is not legal advice. A charge sets out the prosecution's position only, and the suspect is presumed innocent.
