Five men have pleaded guilty in a U.S. court to their roles in laundering over $36.9 million connected to a fraudulent cryptocurrency investment scheme that targeted American victims and operated out of centres in Cambodia, according to the U.S. Department of Justice on 10 June 2025.
The scam, which promised high returns through digital asset investments, used various platforms including social media, dating apps, phone calls and text messages to lure victims. The perpetrators gained the trust of individuals in the United States before encouraging them to invest in what they claimed were legitimate cryptocurrency ventures. However, rather than being invested, the funds were diverted through shell companies, crypto wallets and foreign accounts.
At least $36.9 million of the defrauded funds ended up in a Bahamian bank account under a company named Axis Digital Limited. A portion of these funds was converted into the stablecoin Tether (USDT) and routed to cryptocurrency wallets controlled by associates based in Cambodia. The funds eventually reached operators of scam centres located in areas including Sihanoukville.
Among those who pleaded guilty were Joseph Wong of California and Yicheng Zhang, a dual national of China and Turkey. Both admitted to conspiring to launder money, an offense that carries a maximum prison sentence of 20 years. The remaining three—Jose Somarriba from Los Angeles, Shengsheng He of California, and Jingliang Su—pleaded guilty to operating an unlicensed money services business, which could result in a maximum five-year sentence.
Authorities say Wong coordinated a network in Los Angeles that helped establish false companies and bank accounts to facilitate the movement of funds, while Zhang opened additional accounts for similar purposes. Cambodian authorities had earlier raided suspected scam facilities in Sihanoukville in March, part of wider regional efforts to address cyber-fraud operations.
