A Chinese national involved in a $36.9 million cryptocurrency fraud case has been extradited to the United States

Chinese national Zheng Zhao was extradited from the Netherlands to the United States and appeared in court on October 23 in the Central District of California. He is suspected of participating in an investment fraud and money laundering case involving 174 American victims, with funds exceeding $36.9 million.

The U.S. Department of Justice (DOJ) stated that the fraudulent activities were operated by a scam center in Cambodia. Prosecutors claimed that over $36.9 million was transferred into an account at Deltec Bank in the Bahamas controlled by accomplices, and then exchanged for the stablecoin USDT and transferred to a digital asset wallet in Cambodia. Eight other co-defendants have pleaded guilty; Zheng Zhao faces charges of conspiracy to commit money laundering, which could result in a maximum sentence of 20 years in prison if convicted.