Federal prosecutors have brought a Chinese national to Los Angeles to face charges after his extradition from the Netherlands in an international cryptocurrency investment scam that targeted Americans.
Zheng Zhao, 44, was ordered detained during his initial court appearance on October 23rd, 2026, with arraignment set for November 30th, says the U.S. Attorney’s Office for the Central District of California.
Prosecutors say Zhao participated in an overseas scheme where co-conspirators contacted US victims through unsolicited social media interactions, phone calls, text messages and online dating platforms to gain their trust. They subsequently promoted fraudulent digital asset investments, directing victims to fake websites designed to resemble legitimate cryptocurrency trading platforms, where they were persuaded to deposit funds.
The scammers falsely claimed that victims’ investments were increasing in value while secretly stealing their money. More than $36.9 million in victim funds was transferred from US bank accounts controlled by the co-conspirators to a single account at Deltec Bank in the Bahamas. Zhao and other co-conspirators arranged for Deltec Bank to convert the funds into Tether (USDT), a stablecoin, and transfer the assets to a digital wallet controlled in Cambodia. Cambodian co-conspirators then distributed the USDT to the leaders of scam centers across the region.
The scheme identified and targeted 174 US citizens.
Says Assistant Attorney General A. Tysen Duva,
“This extradition should be a lesson to all those who seek to exploit vulnerable Americans from overseas. We will pursue charged defendants anywhere in the world, especially those who are alleged to have stolen money, converted it to cryptocurrency, and used foreign financial institutions in the process to try to hide and obfuscate their crimes. Wherever you are, we have the reach to find you.”
Zhao faces up to 20 years in prison if convicted, while eight co-conspirators have already pleaded guilty in the case.
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