Chinese Citizen Charged with Money Laundering, $37 Million in Cryptocurrencies

Zheng Zhao, a 44-year-old Chinese citizen, has been charged in the U.S. with money laundering following his extradition from the Netherlands. The charges relate to a fraud scheme involving over $36.9 million that affected 174 American victims. Zhao allegedly orchestrated a conspiracy to launder money from scams, with his activities taking place in August 2025. He faces up to 20 years in prison. Deputy Attorney General A. Tysen Duva stated that the extradition should serve as a warning to those exploiting Americans from abroad. Eight of Zhao's accomplices have pleaded guilty to operating an unlicensed money transfer business and have been sentenced to several months in prison. The scammers contacted victims through social media, persuading them to invest in cryptocurrencies on fake platforms. The scheme utilized American shell companies and international bank accounts. In total, the criminals transferred over $36.9 million to an account at Deltec Bank in the Bahamas, where the funds were converted into USDT stablecoins. A public blockchain registry helped the FBI solve the case. The downfall of this project fits into a broader trend, including the extradition of the leader of Prince Group from Cambodia and the arrest of an accomplice in Japan.

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