Five individuals from China, the United States, and Turkey have pleaded guilty to laundering $36.9 million stolen through cryptocurrency investment scams operated from Cambodia. The U.S. Department of Justice (DOJ) confirmed the guilty pleas on June 10, 2025, marking a significant development in a transnational financial crime case.1 The operation targeted U.S. victims through social engineering tactics, including dating apps and social media platforms, before funneling proceeds through shell companies and converting funds to USDT (Tether).2
Case Overview and Modus Operandi
The defendants—Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng He, and Jingliang Su—used a network of shell companies to obscure the origin of funds stolen from victims. According to court documents, the group collaborated with Cambodia-based “pig-butchering” scam centers, where fraudsters build trust with targets before persuading them to invest in fraudulent crypto schemes.3 The laundered funds were converted to USDT and transferred to overseas accounts, complicating recovery efforts. Wong and Zhang face up to 20 years for money laundering, while the others received 5-year sentences for operating unlicensed money services.1
Technical Execution and Red Team Implications
The laundering process involved layered transactions across multiple jurisdictions, exploiting cryptocurrency’s pseudonymous nature. Shell companies registered in the U.S. and Turkey were used to create false invoices, while USDT provided liquidity and reduced traceability. For defensive teams, this case highlights the need for enhanced transaction monitoring systems capable of detecting:2
- Rapid conversion between fiat and stablecoins
- Shell company transactions with mismatched business activity
- Geographic inconsistencies in counterparties
Broader Context: Financial Fraud Trends
This case aligns with a surge in crypto-related fraud. In May 2025, another Chinese money laundering network pleaded guilty to moving $92M for drug cartels using similar methods.4 The DOJ’s “Operation Take Back America” has prioritized dismantling such networks, particularly those linked to transnational criminal organizations (TCOs).5
Mitigation Strategies
Organizations can adopt the following measures to detect similar laundering attempts:
– Implement AI-driven anomaly detection for transaction patterns
– Require enhanced due diligence for accounts frequently transacting with crypto exchanges
– Collaborate with law enforcement through FinCEN’s whistleblower program
The case underscores the evolving sophistication of financial cybercrime and the importance of cross-border cooperation in investigations. With crypto scams accounting for 23% of all investment fraud in 2024, proactive monitoring remains critical.3
