● Covered by 2 sources · 2 reportsMedium impact2 neutral
Chinese National Extradited to US for Role in $37 Million Cryptocurrency Scam
Key points
- Zhen Zhao, 44, was extradited from the Netherlands to California.
- He is accused of involvement in a $36.9 million cryptocurrency scam.
- 174 US victims were defrauded through fake investment schemes.
- Stolen funds were converted to USDT and sent to Cambodia.
- Zhao is the ninth person charged in this fraud investigation.
Extradition and Arraignment
Zhen Zhao, a 44-year-old Chinese national, was extradited from the Netherlands to the United States and arraigned in a California district court. He faces charges related to his alleged role in a cryptocurrency investment scam that defrauded numerous victims.
Zhao was charged in August 2025 and could face up to 20 years in prison if convicted on one count of conspiracy to commit money laundering.
The Investment Fraud Scheme
Prosecutors allege that Zhao, along with accomplices in the United States and Cambodia, tricked 174 US victims into transferring nearly $37 million. The scheme, also known as 'pig butchering' or 'romance baiting' scams, involved cybercriminals contacting targets through social media, dating sites, and messaging apps.
The perpetrators built trust with victims before luring them into fake investment schemes, promising digital asset investments that were never made. They created fake websites resembling real cryptocurrency trading platforms to deceive victims into believing their funds were growing.
Money Laundering Operations
Zhao is accused of being a key money-launderer for the criminal group. Court documents state that he helped facilitate the transfer of stolen funds to a bank account at Deltec Bank in the Bahamas. From there, Zhao allegedly converted the funds into the cryptocurrency stablecoin USDT (Tether).
The converted USDT was then transferred to digital wallets controlled by individuals in Cambodia, and subsequently distributed to the leaders of scam centers throughout Southeast Asia.
Ongoing Investigation
Zhao is the ninth individual to be charged as part of this extensive fraud investigation. Eight other individuals have already pleaded guilty to money laundering charges in connection with the scheme. US investigators have identified at least 174 American victims affected by the scam.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
A Chinese national, Zheng Zhao, was extradited from the Netherlands and arraigned in a U.S. court for allegedly laundering funds from a Cambodian investment scam. Zhao is accused of converting $36.9 million in victim funds into cryptocurrency to transfer to scam centers in Southeast Asia, marking the ninth charge in this ongoing fraud investigation.
A Chinese national, Zhen Zhao, was extradited from the Netherlands to California for his alleged role in a cryptocurrency investment scam that defrauded 174 US victims of nearly $37 million. Zhao and accomplices allegedly used fake investment platforms and social engineering to trick victims into transferring funds, which were then converted to Tether and sent to Cambodia.