The DOJ announced that five men have pleaded guilty for their roles in laundering over $36.9 million from victims of an international digital asset investment scam.
According to court documents, Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng He, and Jingliang Su orchestrated a fraudulent scheme where unsuspecting victims were led to believe they were investing in legitimate digital assets. The scheme primarily targeted individuals in the U.S. through various social media platforms, phone calls, text messages, and online dating services. After building trust with their victims, the scammers persuaded them to invest.
The victims then transferred more than $36.9 million to America bank accounts controlled by the conspirators. And the funds were then moved to Deltec Bank in the Bahamas, under the name Axis Digital Limited. Ultimately, the conspirators directed Deltec Bank to convert the funds into Tether (USDT) and transfer them to a digital asset wallet controlled by individuals in Cambodia. From there, the funds were then distributed to leaders of scam centers in Cambodia.
Joseph Wong and Yicheng Zhang pleaded guilty to money laundering conspiracy and could each face up to 20 years in prison. Shengsheng He, Jose Somarriba, and Jingliang Su admitted guilt for conspiracy to operate an unlicensed money services business, carrying a maximum sentence of five years in prison. Zhang has remained in custody since May 2024, while Su has been detained since November 2024.
The attorneys at Chilivis Grubman represent clients of all types and sizes in connection to cybercrime and financial fraud. If you need assistance with such a matter, please contact us today.