A 44-year-old Chinese national has been brought to Los Angeles to face charges tied to an international cryptocurrency investment scam that targeted Americans, following his extradition from the Netherlands.
Zheng Zhao was ordered detained during his initial court appearance on Oct. 23, 2026, according to the U.S. Attorney's Office for the Central District of California. His arraignment is scheduled for Nov. 30.
How prosecutors say the scheme operated
Prosecutors allege Zhao took part in an overseas operation in which co-conspirators contacted U.S. victims through unsolicited social media interactions, phone calls, text messages and online dating platforms in order to gain their trust.
The conspirators then promoted fraudulent digital asset investments and directed victims to fake websites built to resemble legitimate cryptocurrency trading platforms, where the victims were persuaded to deposit funds. The scammers falsely told victims their investments were rising in value while secretly taking the money, prosecutors say.
Funds routed through Bahamas account to Cambodia
More than $36.9 million in victim funds was moved from U.S. bank accounts controlled by the co-conspirators to a single account at Deltec Bank in the Bahamas, according to the U.S. Attorney's Office.
Zhao and other co-conspirators arranged for the bank to convert the funds into Tether (USDT), a stablecoin, and to transfer the assets to a digital wallet controlled in Cambodia, prosecutors say. Cambodian co-conspirators then distributed the USDT to leaders of scam centers across the region.
The scheme identified and targeted 174 U.S. citizens.
Charges and co-defendants
Zhao faces up to 20 years in prison if convicted. Eight co-conspirators have already pleaded guilty in the case, according to the U.S. Attorney's Office.
"This extradition should be a lesson to all those who seek to exploit vulnerable Americans from overseas," Assistant Attorney General A. Tysen Duva said. "We will pursue charged defendants anywhere in the world, especially those who are alleged to have stolen money, converted it to cryptocurrency, and used foreign financial institutions in the process to try to hide and obfuscate their crimes. Wherever you are, we have the reach to find you."
