U.S. vs. Crypto Scammers: A Battle Across Borders

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A Chinese national just received nearly four years in federal prison for orchestrating a massive cryptocurrency laundering operation that drained $36.9 million from hardworking Americans through sophisticated “pig-butchering” scams—exposing how criminals exploit unregulated crypto channels and offshore banking to target vulnerable U.S. citizens while evading accountability.

Story Snapshot

Jingliang Su sentenced to 46 months and ordered to pay $26 million restitution for laundering $36.9 million stolen from 174 U.S. victims
Scheme used fake cryptocurrency platforms and Tether conversions through Bahamas-based Deltec Bank to funnel money to Cambodia scam centers
Part of broader DOJ crackdown with nine guilty pleas securing over $350 million in recoveries from international cybercrime networks since 2020
Victims lured through social media, dating apps, and unsolicited messages promising high-yield crypto returns

Chinese National Sentenced in Multimillion-Dollar Scam

U.S. District Judge R. Gary Klausner sentenced 45-year-old Jingliang Su to 46 months in federal prison on January 28, 2026, for conspiring to operate an illegal money transmitting business. Su pleaded guilty in June 2025 after entering custody in December 2024. He served as a director at Axis Digital Limited, funneling stolen funds through U.S. shell companies and Deltec Bank in the Bahamas, converting them to Tether cryptocurrency before transferring them to Cambodia-based scam operations. The court also ordered Su to pay $26 million in restitution to 174 identified American victims who lost their hard-earned savings.

Chinese National Sentenced to Nearly Four Years for Laundering $36.9M in Crypto Scam
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— Townhall Updates (@TownhallUpdates) January 28, 2026

Pig-Butchering Scams Target American Investors

The operation exemplifies “pig-butchering” scams—a term originating in China around 2014-2016 that compares the fraud process to fattening pigs before slaughter. Overseas scammers contacted victims through social media platforms, phone calls, text messages, and dating apps, building trust over time before directing them to fake cryptocurrency investment websites designed to mimic legitimate exchanges. Once victims transferred funds believing they were making legitimate investments, the money moved rapidly through multiple jurisdictions. The scheme exploited Americans’ growing interest in cryptocurrency opportunities while leveraging sophisticated social engineering tactics to bypass traditional skepticism.

Cambodia-Based Networks Fuel International Crime

Scam operations shifted to Southeast Asian nations like Cambodia following Chinese government crackdowns on domestic fraud networks. These Cambodia-based centers operate as coordinated criminal enterprises, often using forced labor in “scam compounds” to execute large-scale fraud campaigns. Funds stolen from U.S. victims followed a complex path: transfers to fake platforms, movement through U.S.-based shell accounts controlled by Su and co-conspirators, conversion to Tether stablecoins via Deltec Bank, and final distribution to Cambodian digital wallets. This multi-layered approach was designed to obscure the money trail and evade law enforcement detection across international borders.

DOJ Expands Fight Against Crypto Laundering Rings

Su’s sentencing represents the latest milestone in an aggressive Justice Department campaign targeting international cryptocurrency fraud networks. Eight co-conspirators previously pleaded guilty, including California resident Shengsheng He, who received 51 months and $26.8 million in restitution, and Jose Somarriba, sentenced to 36 months. First Assistant U.S. Attorney Bill Essayli stated that while new investment opportunities offer promise, they “have a dark side: attracting criminals who stole then laundered tens of millions.” Assistant Attorney General A. Tysen Duva emphasized that scammers “weaponize the internet” and the DOJ continues evolving strategies to counter digital fraud, having secured convictions against over 180 cybercriminals since 2020.

Victims Face Devastating Financial Losses

The 174 identified American victims suffered catastrophic financial harm, with families losing life savings to fraudsters who exploited trust and cryptocurrency’s complex nature. These hardworking citizens sought legitimate investment returns but instead encountered sophisticated criminals operating beyond U.S. borders. The case underscores vulnerabilities facing Americans in an increasingly digital financial landscape where unregulated offshore banks and cryptocurrency platforms create opportunities for bad actors. Authorities recommend victims of similar schemes report incidents to the FBI’s Internet Crime Complaint Center at IC3.gov to aid ongoing investigations and potential recovery efforts through federal seizure and forfeiture actions.

Broader Implications for Cryptocurrency Regulation

This prosecution highlights critical weaknesses in cryptocurrency oversight that criminals exploit to launder illicit funds across international boundaries. Tether’s role as the preferred conversion vehicle and Deltec Bank’s facilitation of transfers raise serious questions about compliance standards at offshore financial institutions. The DOJ’s recovery of over $350 million since 2020 demonstrates the scale of crypto-enabled crime targeting Americans. Federal authorities are escalating pressure on cryptocurrency exchanges and international banking partners to strengthen anti-money laundering protocols. The case serves as a stark warning that insufficient regulatory frameworks create environments where foreign criminals can systematically plunder American citizens’ wealth through digital channels.