A Chinese national, Zheng Zhao, was extradited from the Netherlands to the U.S. and appeared in a California federal court on Friday, October 23, 2026. Zhao, 44, is accused of conspiring to launder millions of dollars stolen from U.S. victims in a $36.9 million cryptocurrency investment scam.
According to the Department of Justice, Zhao allegedly participated in an international criminal network operating through scam centers in Cambodia. The scheme targeted victims with fraudulent cryptocurrency investments, using social media, phone calls, text messages, and online dating services to gain their trust.
The scammers directed victims to fake cryptocurrency trading websites that showed investments increasing in value, but prosecutors said the money had actually been stolen. Over $36.9 million in victim funds was transferred from U.S. bank accounts to an account at Deltec Bank in the Bahamas.
Prosecutors claim Zhao and his co-conspirators converted the stolen funds into Tether, a cryptocurrency tied to the U.S. dollar, before transferring it to digital wallets controlled in Cambodia. The funds were then distributed to leaders of scam centers operating in the region.
Assistant Attorney General A. Tysen Duva stated that the extradition should serve as a lesson to those who seek to exploit vulnerable Americans from overseas. Zhao faces up to 20 years in prison if convicted. Eight other defendants have already pleaded guilty in connection with the scheme.