Zheng Zhao, a 44-year-old Chinese national, appeared in a Los Angeles federal court on Oct. 23 after being extradited from the Netherlands over his alleged role in laundering $36.9 million stolen from crypto scam victims in the United States.
According to the US Department of Justice, Zhao was detained in the Netherlands in connection with an international fraud network operating from scam centers in Cambodia. A judge ordered him held pending further proceedings. He was charged with conspiracy to commit money laundering in August 2025 and faces up to 20 years in federal prison if convicted.
Prosecutors allege Zhao helped the network move money stolen from 174 identified American victims through US shell companies, international bank accounts and cryptocurrency wallets. The scheme began with fraudsters contacting victims via social media, dating platforms, phone calls and text messages, directing them to fraudulent crypto investment websites that displayed fabricated gains to encourage further deposits.
Investigators traced more than $36.9 million in stolen funds from US bank accounts controlled by the conspirators to a single account at Deltec Bank in the Bahamas. Zhao and other participants allegedly arranged for the bank to convert the funds into Tether's USDT stablecoin before transferring the crypto to a wallet controlled by individuals in Cambodia, who then distributed the digital assets to leaders of scam centers across the region. Prosecutors have not accused Tether or Deltec Bank of knowingly participating in the fraud.
