A Chinese national has appeared in a California court after being extradited from the Netherlands over his alleged role in a cryptocurrency investment scam that defrauded 174 victims in the United States of nearly $37 million.
The 44-year-old suspect, Zhen Zhao, is accused of working with accomplices in the United States and Cambodia to convince victims to invest in fraudulent digital asset schemes. Prosecutors say the group used social media, unsolicited text messages, phone calls and online dating platforms to contact potential victims, build trust and persuade them to transfer money.
The operation allegedly used a tactic known as pig butchering, in which scammers develop relationships with their targets before directing them toward fake investment opportunities. Victims were shown fabricated investment returns on fraudulent cryptocurrency trading websites, making it appear that their money was growing when the funds had actually been stolen.
According to the U.S. Department of Justice, the scammers created websites that imitated legitimate cryptocurrency trading platforms. Victims were instructed to transfer money through these sites under the impression that their funds would be invested in digital assets.
Investigators allege that more than $36.9 million was transferred from victims’ U.S. bank accounts to an account at Deltec Bank in the Bahamas, opened under the name Axis Digital Limited. Zhao and his alleged co-conspirators then arranged for the money to be converted into Tether (USDT), a cryptocurrency pegged to the U.S. dollar, before transferring it to a digital asset wallet controlled in Cambodia.
The funds were allegedly passed to leaders of scam centers operating across the region, according to prosecutors.
Zhao was charged in August 2025 with conspiracy to commit money laundering. If convicted, he faces a maximum sentence of 20 years in prison. The charge remains an allegation, and he is presumed innocent unless proven guilty.
Eight alleged co-conspirators have already pleaded guilty in connection with the international scheme. Two have received prison sentences of 51 months and 46 months, respectively, for their roles in the cryptocurrency investment fraud.
The case highlights the continuing threat posed by cryptocurrency investment scams. According to the FBI’s 2025 Internet Crime Report, investment fraud resulted in more than $8.6 billion in reported losses during 2025, based on 72,984 complaints, up from $6.5 billion in 2024.
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Security experts regularly warn that scammers often use fake trading platforms, fabricated profits and personal relationships to convince victims to send increasingly large sums of money. Investors should be wary of unsolicited investment offers, especially when someone they have met online encourages them to transfer cryptocurrency or use an unfamiliar trading website.
Chinese National Extradited Over $37 Million Cryptocurrency Scam
