CROWDFUNDINSIDER · 2026-10-28 13:21 UTC

Chinese National Arraigned in California After Extradition in Alleged $36.9 Million Crypto Investment Scheme

Chinese national Zheng Zhao extradited to California and arraigned for alleged $36.9 million cryptocurrency investment fraud targeting Americans through fake trading platforms. Prosecutors say the scheme operated from Cambodia scam centers, with victims contacted via social media and dating apps, their funds moved through shell companies and converted to Tether (USDT) at Deltec Bank in the Bahamas. Zhao faces up to 20 years in prison for conspiracy to commit money laundering; eight co-conspirators have already pleaded guilty and received sentences of 46-51 months.

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