Five Admit Laundering Millions from Cambodia-Based Crypto Investment Scams

Five men have pleaded guilty in the United States to laundering nearly £29 million ($36.9 million) stolen through fraudulent cryptocurrency investment schemes run from cyber scam centres in Cambodia.

 

The US Justice Department said the group was part of an international syndicate that targeted victims across the United States, luring them with fake crypto investment opportunities. The scammers provided fabricated returns while funnelling real funds through shell companies, offshore accounts, and cryptocurrency wallets.

 

Two of the defendants — Joseph Wong, 33, of California, and Yicheng Zhang, 39, of China — pleaded guilty to conspiracy to commit money laundering and face up to 20 years in prison. The other three — Jose Somarriba, 55, Shengsheng He, 39, and Jingliang Su, 44 — admitted to running an unlicensed money services business, with each facing a maximum of five years.

 

Court documents revealed the funds were transferred from US victims to an account at Deltec Bank in the Bahamas, under a shell firm named Axis Digital. The money was then converted to USDT (a dollar-backed stablecoin) and moved to crypto wallets tied to scam leaders in Cambodia.

 

The group’s operations were coordinated with scam centres in Sihanoukville, a city notorious for Chinese criminal networks. One member, He, frequently travelled between the US and Phnom Penh to manage transfers. Wong oversaw a network of Los Angeles-based money launderers, while Zhang operated two US bank accounts involved in the scheme.

 

This case is part of a broader crackdown on so-called “pig butchering” scams — online cons that groom victims over time before stealing their money. The US recently sanctioned Cambodia’s Huione Group, accusing it of facilitating billions in cybercrime proceeds.