Zheng Zhao was extradited from the Netherlands and arraigned in the Central District of California on October 23, the Justice Department said. He is charged with conspiracy to commit money laundering in connection with an alleged cryptocurrency investment scheme operated from scam centers in Cambodia. The government identified 174 U.S. victims. According to court documents cited by the department, more than $36.9 million in victim funds moved from U.S. bank accounts controlled by co-conspirators to a Deltec Bank account in the Bahamas. The funds were allegedly converted to USDT and sent to a digital-asset wallet controlled in Cambodia. Zhao was charged in August 2025 and faces up to 20 years in prison if convicted. The allegations have not been proven.

Why it matters

  • The case describes alleged laundering across U.S. bank accounts, a Bahamas bank account and a Cambodia-controlled digital-asset wallet.
  • The Justice Department says its international coordination with Dutch authorities secured Zhao’s arrest and extradition.