Five men have pleaded guilty to orchestrating a nearly $37 million crypto scam that defrauded Americans and funneled stolen funds to a cryptocurrency hub in Cambodia. The U.S. Department of Justice revealed that the fraudsters used fake identities on social media, messaging apps, and dating platforms to build trust and trick victims into investing in bogus crypto schemes.

Victims were told their investments were growing, but in reality, the funds were being laundered through shell companies and U.S. bank accounts, then converted into the stablecoin Tether (USDT) and sent to wallets in Cambodia. The accused — Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng He, and Jingliang Su — were based across the U.S., China, Turkey, and Spain.

The laundering scheme operated through a fake company named Axis Digital. Funds were routed through a Bahamian bank, with Su handling USDT conversions, Wong managing international transfers, and Zhang overseeing U.S. bank accounts tied to the fraud.

Zhang and Wong face up to 20 years in prison for money laundering, while the other three could each serve up to five years for operating an unlicensed money services business. Su, who has been in custody since November 2024, awaits sentencing later this year.

This case adds to mounting pressure on Cambodia’s Huione Group, which the U.S. Treasury is seeking to blacklist for allegedly aiding North Korea’s Lazarus Group in laundering stolen crypto. Despite sanctions, crypto watchdogs report Huione-linked services may still be operating under new names, continuing to facilitate illicit crypto flows. The case highlights growing concerns about Southeast Asia's role in global crypto crime networks.