DOJ Details Prison Sentence in Multi Million Crypto Fraud Scheme

Federal prosecutors have confirmed a prison sentence in a large scale cryptocurrency investment fraud case that targeted hundreds of victims across the United States. The case centers on a Chinese national linked to an international scam network that moved tens of millions of dollars through fake trading platforms.

The U.S. Department of Justice said Jingliang Su pleaded guilty to conspiracy to operate an illegal money transmitting business. The federal court ordered Su to serve 46 months in prison and pay $26,867,242.44 in restitution.

Good to Know

• The fraud scheme took more than $36.9 million from 174 victims
• Scammers operated from Cambodia using fake crypto trading platforms
• Funds were converted into USDT and routed through offshore accounts

Investigators said Su worked with co conspirators running scam centers in Cambodia. The group contacted victims through unsolicited social media messages, phone calls, text messages, and online dating platforms. Those interactions focused on building trust before directing victims to professional looking cryptocurrency investment websites.

Victims transferred funds believing they were making legitimate crypto investments. Instead, the money moved immediately into accounts controlled by the fraud ring. None of the advertised trading activity existed.

After collecting victim funds, the group moved the money through a US shell company and an account held at Deltec Bank in the Bahamas. The funds were then converted into the stablecoin Tether and transferred into digital wallets connected to scam operations in Cambodia.

Federal prosecutors said the laundering process allowed the group to move large sums across borders while masking the original source of the funds. The structure relied on speed and volume rather than long term custody.

Eight additional defendants have pleaded guilty in connection with the scheme. Several have already received federal prison sentences ranging from 36 months to 51 months, according to court records.

First Assistant US Attorney Bill Essayli of the Central District of California said:

“New investment opportunities may sound intriguing, but they have a dark side: attracting criminals who, in this case, stole then laundered tens of millions of dollars from their victims… I thank our law enforcement partners for their efforts at bringing this defendant to justice and I encourage the investing public to be cautious. An ounce of prevention is worth a pound of cure.”

FAQ

How much money did the crypto fraud scheme take

The operation siphoned more than $36.9 million from 174 victims.

Where did the scam operations run

Investigators said the scam centers operated from Cambodia.

How was the stolen money moved

Funds passed through a US shell company, an offshore bank account, and were converted into USDT before transfer.

How long is Jingliang Su sentenced to prison

The court imposed a 46 month federal prison sentence.