DUTCH authorities have extradited Zheng Zhao, a 44-year-old Chinese national, to California to face charges connected with a Cambodia-based cryptocurrency scam that targeted Americans. The Department of Justice announced Zhao’s arraignment in Los Angeles federal court on 23 October 2026. Prosecutors allege that overseas operators reached US victims via social media, dating apps, phone calls and texts, promoting fake digital asset platforms that showed fabricated investment gains.
The scheme purported to funnel more than $36.9 million from 174 American victims through U.S. shell companies to a single Deltec Bank account in the Bahamas, where funds were reportedly converted into Tether (USDT) and transferred to digital wallets in Cambodia.
Authorities attribute the operation to a transnational network running scam activities in Cambodia, with Zhao indicted in August 2025 for conspiracy to commit money laundering and eight co-conspirators already having pleaded guilty, receiving prison terms of 51 and 46 months for ShengSheng He and Jingliang Su, respectively. If convicted, Zhao faces up to 20 years in federal prison.
Investigators warn that there is no safe harbour for scammers, and victims are advised to ignore unsolicited investment messages on dating apps and to report suspected fraud to IC3[.]gov.