US extradites Chinese national in $36.9 million crypto scam case

• Zheng Zhao was extradited from the Netherlands to face charges over an alleged cryptocurrency investment conspiracy targeting US citizens.
• Investigators identified 174 US victims and traced more than $36.9 million through accounts linked to co-conspirators.
• Prosecutors allege the network converted stolen funds into Tether (USDT) and moved them to wallets in Cambodia.

Zheng Zhao, 44, appeared in a California federal court on 23 October after extradition from the Netherlands over his alleged role in the scheme.

The alleged operation used unsolicited messages, calls and dating platforms to lure victims into fake cryptocurrency investment websites.

“This extradition should be a lesson to all those who seek to exploit vulnerable Americans from overseas,” said Assistant Attorney General A. Tysen Duva.

Co-conspirators allegedly routed more than $36.9 million through a Bahamas bank account before converting the funds into Tether (USDT).

“As crime has globalized, so has law enforcement’s ability to locate and catch criminals,” said First Assistant US Attorney Bill Essayli.

Investigators allege the converted USDT moved to a Cambodian wallet before reaching leaders of scam centres across the region.

Eight co-conspirators have pleaded guilty, while Zhao faces up to 20 years in prison if convicted of money-laundering conspiracy.

The case remains an allegation, and Zhao is presumed innocent unless proven guilty beyond a reasonable doubt in court.