The Justice Department says Zhen Zhao, 44, was arraigned in the Central District of California after extradition from the Netherlands. Prosecutors allege he was part of a network run from Cambodian scam centers that contacted U.S. victims by text, social media, calls and dating sites, then steered them to fake crypto trading sites. More than $36.9 million moved through U.S. shell-company accounts into a single account at Deltec Bank in the Bahamas, which converted it to USDT and sent it to a wallet controlled in Cambodia. The government identified 174 U.S. victims.

Zhao was charged in August 2025 with conspiracy to commit money laundering (up to 20 years). Eight co-conspirators have pleaded guilty, two of whom got 51 and 46 months. Takeaway for fraud teams: the laundering path ran through ordinary U.S. business accounts before it ever touched crypto.