Five individuals have confessed to their involvement in a vast international digital asset investment fraud that swindled victims out of over $36.9 million, as announced today by the U.S. Department of Justice.
This operation, which was run from scam centers located in Cambodia, deceived U.S. victims into thinking they were investing in digital assets. In reality, their money was redirected to shell companies, laundered through both U.S. and international bank accounts, and eventually moved into digital wallets managed by criminal organizations in Southeast Asia.
The accused—Joseph Wong, 33, from Alhambra, California; Yicheng Zhang, 39, from China; Jose Somarriba, 55, from Los Angeles; Shengsheng He, 39, from La Puente, California; and Jingliang Su, 44, who holds dual residency in China and Turkey—acknowledged their participation in the conspiracy as part of a coordinated series of guilty pleas submitted in federal court.
Elaborate Scheme to Exploit Digital Investment Craze
According to court records, the operation employed various deceptive strategies to attract victims, such as unsolicited messages through social media, online dating platforms, and text messages.
Once trust was established, the fraudsters advertised fake investment platforms that seemed to display increasing returns—although the money was never truly invested.
Instead, the victims’ money was redirected into a bank account at Deltec Bank in the Bahamas, which was opened under the name Axis Digital Limited, a shell company created by Somarriba and He. The funds were subsequently converted into the stable coin Tether (USDT) and transferred to digital wallets managed by co-conspirators in Cambodia, especially in Sihanoukville, a city recognized as a center for cyber fraud activities.
Su became a director at Axis Digital and played a role in overseeing the cryptocurrency conversions and transfers.
Roles in the Conspiracy
- Joseph Wong oversaw a money laundering network in Los Angeles, registering shell companies and wiring funds to offshore accounts.
- Yicheng Zhang managed two U.S. bank accounts used to launder stolen funds.
- Somarriba, He, and Su directed the flow of funds through Axis Digital and coordinated the crypto conversions at Deltec Bank.
Wong and Zhang pleaded guilty to conspiracy to commit money laundering, carrying a maximum sentence of 20 years in prison. Zhang has been in custody since May 2024.
He, Somarriba, and Su pleaded guilty to conspiracy to operate an unlicensed money services business, which carries a maximum sentence of five years. Su has been detained since November 2024.
A federal district judge will determine their sentences, factoring in the U.S. Sentencing Guidelines.
Broader Criminal Network
The five guilty pleas bring the total number of convicted co-conspirators in the case to eight. Previous guilty pleas include:
- Daren Li, a dual citizen of China and St. Kitts and Nevis, who coordinated from Cambodia and the UAE.
- Lu Zhang, a Chinese national living illegally in the U.S., who ran another U.S.-based money laundering operation.
Li and Zhang both pleaded guilty to conspiracy to commit money laundering in 2024.
International Law Enforcement Effort
The investigation was led by the U.S. Secret Service’s Global Investigative Operations Center, with significant support from Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, U.S. Customs and Border Protection, the Department of State’s Diplomatic Security Service, the Dominican National Police, and the U.S. Marshals Service.
The case is being prosecuted by Trial Attorneys Stefanie Schwartz and Tamara Livshiz of the DOJ Criminal Division, and Assistant U.S. Attorneys Maxwell Coll, Nisha Chandran, and Alexander Gorin for the Central District of California.
Officials say the investigation is ongoing, with more arrests and charges possible as authorities continue to track the complex international network.
“This case demonstrates the reach and sophistication of modern financial crime,” said Matthew R. Galeotti, Head of the DOJ’s Criminal Division. “The Justice Department remains committed to identifying and prosecuting the perpetrators of fraud—no matter where in the world they operate.”
