A California man has been sentenced for laundering a significant sum of money stolen from American investors through an international cryptocurrency scheme.
Cryptocurrency Scam Scheme
The scheme involving Shengsheng He is described as a coordinated crime involving multiple actors working in so-called "pig butchering" centers in Cambodia. These centers lure victims through unsolicited messages, social media, and dating apps, convincing them to invest in fake digital assets.
Shengsheng He's Role in Money Laundering
Shengsheng He, 39, of La Puente, California, pleaded guilty in April to conspiracy to operate an unlicensed money transmitting business. He co-owned Axis Digital Limited, a shell company based in the Bahamas, which was used to move stolen funds to international accounts and convert them into Tether (USDT) before routing them to digital wallets controlled by scam operators in Cambodia.
Consequences and Government Response
The court ordered Shengsheng to pay $26.87 million in restitution. So far, eight co-conspirators have pleaded guilty, including Jose Somarriba and Jingliang Su, who helped manage fund transfers and digital asset conversions. This case is part of the DOJ's broader crackdown on crypto-related fraud, including asset seizures and restitution efforts.
Shengsheng He's case highlights the serious risks associated with investments in cryptocurrency and the active fraud occurring in this area, necessitating increased attention from authorities and users.
