California Man Jailed for Role in $36.9M Crypto Scam

Shengsheng He, a California resident, has been recently sentenced to more than four years in federal prison for a crypto ￰0￱ was found guilty of helping launder nearly $37 million stolen from American ￰1￱ case is part of a larger international crypto fraud network run out of Cambodia, according to the ￰2￱ of Justice (DOJ). DOJ Traces $36.9M Crypto Scam to Cambodia According to the DOJ, the scam was organized from Cambodia, where fraudsters targeted Americans through text messages, social media, phone calls, and online dating ￰3￱ were promised high returns from what appeared to be safe crypto ￰4￱ of investing, the group moved the money through shell companies, ￰5￱ accounts, and crypto ￰6￱ least $36.9 million was transferred from ￰7￱ into an Axis Digital account at Deltec Bank in the ￰8￱ there, the funds were converted into the stablecoin USDT and sent to wallets controlled by individuals in ￰9￱ money was then distributed to scam leaders, many of whom operated from Sihanoukville, a city known as a hub for such fraudulent ￰10￱ Scam Lands Man 51-Month Sentence The 39-year-old man has been sentenced to 51 months in federal ￰11￱ addition, he must repay $26.8 million to victims who lost their money in the ￰12￱ comes after he pleaded guilty in April to conspiracy to operate an unlicensed money transmitting business in the Central District of ￰13￱ found out that he co-owned Axis Digital Limited, a Bahamas-based company that prosecutors said was central to moving stolen funds ￰14￱ this setup, money from ￰15￱ was diverted into accounts abroad and later converted into ￰16￱ DOJ confirmed that other culprits have also pleaded guilty in connection with the ￰17￱ includes Chinese nationals Daren Li and Lu Zhang, who oversaw a network of U.

S.-based money launderers tied to the fraudulent ￰18￱ Crackdown on International Fraud Acting Assistant Attorney General Matthew ￰19￱ of the DOJ’s Criminal Division said that foreign scam centers promoting fake digital asset investments have become a growing ￰20￱ stressed that ￰21￱ remain determined to hold accountable those who steal from American investors , regardless of where they ￰22￱ operations are also underway to curb illicit activities around the ￰23￱ August 22, Interpol’s Operation Serengeti 2.0 arrested 1,209 suspected cybercriminals across Africa and recovered $97.4 ￰24￱ crackdown also shut down over 11,000 malicious infrastructures linked to scams that targeted nearly 88,000 victims.