U.S. charges Chen and Zhang for laundering $43 million from investment scams

Charges Filed Against Chen and Zhang

Prosecutors in the U.S. have charged Zhuoying Chen, 27, and Haojie Zhang, 38, for their involvement in laundering $43 million derived from investment fraud schemes. They allegedly ran a crime ring operating out of Queens and Brooklyn between 2020 and 2022.

Details of the Money Laundering Operation

The indictment details how Chen and Zhang managed a network of over a dozen individuals who facilitated the laundering process through a complex system of 140 bank accounts linked to approximately 45 shell companies. Funds from scam victims were ultimately transferred to bank accounts in China.

Nature of the Fraud Scheme

The bulk of the underlying scams involved perpetrators reaching out to targets through social media and messaging apps to establish trust. Victims were then shown fabricated profiles depicting profits to encourage further investments, ultimately resulting in stolen funds.

Wider Impact of Investment Fraud

According to the FBI's 2025 Internet Crime Report, investment scams represented nearly half of all scam incidents, resulting in substantial financial losses, which increased from $6.5 billion in 2024 to $8.6 billion in the last reported year. This highlights the increasing prevalence and cost of such fraud in the U.S.

Government's Response to Investment Scams

In response to the growing issue, U.S. federal authorities have formed the Scam Center Strike Force to disrupt crypto-scam networks. Chen and Zhang's case is among several recent actions taken by the Justice Department against individuals operating similar scams.