Chinese national extradited for $37 million crypto scam

A Chinese national was extradited from the Netherlands to California for alleged involvement in a cryptocurrency investment scam. The fraud schemes, also known as pig butchering or romance baiting scams, stole nearly $37 million from 174 victims in the United States. Cybercriminals contacted targets through social media, dating sites, and messaging apps to build trust before luring them into fake investment schemes.

Prosecutors allege that 44-year-old Zhen Zhao tricked victims into transferring large sums of money to attacker-controlled accounts. Co-conspirators created fake websites resembling real cryptocurrency trading platforms to convince victims to send funds. Zhao and accomplices arranged for Deltec Bank to convert victim funds to the stablecoin Tether (USDT). Converted funds were transferred to a digital asset wallet controlled in Cambodia. Co-conspirators in Cambodia transferred USDT to the leaders of scam centers throughout the region.

Victims transferred over $36.9 million from U.S. bank accounts to an account at Deltec Bank in the Bahamas. The Deltec Bank account was opened under the name Axis Digital Limited. Zhen Zhao was charged in August 2025 with conspiracy to commit money laundering. Zhen Zhao faces a maximum sentence of 20 years in prison if found guilty. Eight of Zhao's accomplices have already pleaded guilty. Two accomplices were sentenced to 51 months and 46 months in prison. According to the FBI's 2025 Internet Crime Report, investment scammers stole over $8.6 billion last year.