A Chinese national has been sentenced to 46 months in prison for his role in a sophisticated cryptocurrency fraud scheme that defrauded 174 American investors of over $36.9 million. Jingliang Su was ordered to pay $26.9 million in restitution to victims by federal courts on January 27, 2026, highlighting a significant law enforcement effort against international financial crime networks exploiting digital assets.
The criminal operation, orchestrated from Cambodia, utilized social media, phone calls, text messages, and online dating services to build false trust with potential victims. These individuals were then lured to counterfeit websites, designed to appear as legitimate cryptocurrency trading platforms, where they unknowingly transferred funds directly into accounts controlled by the scam network.
The U.S. Department of Justice’s Office of Public Affairs noted that this case exemplifies how criminals leverage the internet and digital financial systems for large-scale fraud. The successful dismantling of the criminal network and the tracing of stolen funds involved collaborative efforts from agencies including the U.S. Secret Service, Homeland Security Investigations, and Customs and Border Protection.
Money Laundering Infrastructure and Digital Asset Misuse
A central element of this fraudulent operation was the sophisticated money laundering infrastructure that Jingliang Su helped establish. Following the theft, funds were directed to shell company bank accounts before Su and his associates coordinated the transfer of the entire $36.9 million to a single account at Deltec Bank in the Bahamas. This strategic movement of funds was crucial for the subsequent conversion into Tether (USDT), a stablecoin cryptocurrency.
The conversion into USDT, a stablecoin, was a critical step. It enabled the criminals to rapidly transfer illicit funds across international borders while circumventing the stringent oversight typical of traditional banking systems. From the Bahamas, the converted cryptocurrency was then sent to a digital asset wallet controlled in Cambodia. From there, regional leaders within the scam center distributed the funds throughout Southeast Asia, making the money trail exceptionally difficult for investigators to follow.
Su pleaded guilty in June 2025 to conspiracy to operate an unlicensed money transmitting business, acknowledging his pivotal role in managing the financial backbone of this international fraud. To date, eight co-conspirators have also pleaded guilty, with their sentences ranging from 36 to 51 months in prison, underscoring the coordinated nature of the criminal enterprise.
The prosecution of Jingliang Su and his co-conspirators serves as a stark warning to investors regarding the persistent threats posed by cryptocurrency scams. Law enforcement agencies continue to enhance their capabilities to combat these evolving financial crimes and protect individuals from digital asset fraud. The ongoing efforts to recover the stolen assets and bring all involved parties to justice will likely continue to be a focus for authorities.