Binary code displayed on a laptop screen and Guy Fawkes mask are seen in this illustration photo taken in Krakow, Poland on March 1, 2022. Global hacker group Anonymous declared 'cyber war' against Russia. (Photo by Jakub Porzycki/NurPhoto via Getty Images)
Los Angeles, California – Five men have pleaded guilty to their involvement in a sprawling international scheme that laundered more than $36.9 million from victims of a digital asset investment scam, according to a Justice Department announcement. The conspiracy, orchestrated from scam hubs in Cambodia, targeted unsuspecting U.S. investors who believed they were investing in legitimate digital asset opportunities.
The defendants — Joseph Wong of Alhambra, Yicheng Zhang of China, Jose Somarriba of Los Angeles, Shengsheng He of La Puente, and Jingliang Su, with ties to China and Turkey — formed part of a complex network that exploited digital channels to reach victims. Using unsolicited social media contacts, phone calls, text messages, and even online dating platforms, the overseas co-conspirators cultivated trust with their targets before promoting fraudulent investments. The defendants led victims to believe their assets were appreciating, but in reality, their money was being diverted for illicit purposes.
Central to the operation was the transfer of stolen funds through a series of sophisticated financial maneuvers. Over $36.9 million was moved from U.S. bank accounts controlled by the conspirators into a single account at Deltec Bank in the Bahamas, under the name Axis Digital Limited. Somarriba, He, and Su, founders and directors of Axis Digital, orchestrated the conversion of these funds into the stablecoin Tether (USDT), facilitating transfers to digital wallets managed by actors in Cambodia. From there, the funds were distributed to leaders of scam centers throughout Southeast Asia, including in Sihanoukville.
On the ground in Los Angeles, Wong coordinated a network of money launderers who registered shell companies, established bank accounts, and wired illicit proceeds to international destinations. Zhang managed two U.S.-based bank accounts that served as conduits for laundering funds from victims. Both Wong and Zhang have pleaded guilty to conspiracy to commit money laundering and face up to 20 years in prison.
Additional charges related to operating an unlicensed money services business have been admitted by He, Somarriba, and Su, who face up to five years each. Several other co-conspirators have also entered guilty pleas, including individuals who helped manage laundering networks both inside the United States and internationally.
This case highlights the complex and transnational nature of digital asset fraud and money laundering, with multiple federal, state, and international agencies collaborating to dismantle the network. The U.S. Secret Service’s Global Investigative Operations Center led the investigation, with support from Homeland Security Investigations, Customs and Border Protection, the Department of State, foreign law enforcement, and the U.S. Marshals Service.
Federal prosecutors from the Cyber and Intellectual Property Crimes Section, the Major Frauds Section, and the Criminal Division’s Computer Crime and Fraud Sections are continuing to pursue justice against those involved in this elaborate scheme.
