Five Crypto Scammers Plead Guilty to $37M Fraud Scheme: DOJ

Five men have entered guilty pleas for their involvement in a sophisticated cryptocurrency scam that defrauded American citizens of approximately $36.9 million. The United States Attorney’s Office for the Central District of California announced the pleas on Monday, highlighting the scheme’s intricate network of shell companies, U.S. bank accounts, and its ultimate destination: a cryptocurrency scam center located in Cambodia.

Crypto Scam Investigation Details

The defendants, Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng He, and Jingliang Su, stand accused of orchestrating a calculated campaign to extract funds from unsuspecting victims. Their modus operandi involved direct contact through various social media platforms, messaging applications, and even dating websites.

The scammers used tactics to establish a rapport with their targets through lengthy phone conversations and text messages. They won their trust and got them to put money into fake cryptocurrency plans.

The Department of Justice stated that perpetrators deceived victims regarding the growth of their investments. In reality, the money was stolen from the outset. The criminals employed a sophisticated method to conceal the funds: they converted the stolen cash into Tether (USDT) and transferred it to a digital wallet controlled from Cambodia.

The five people who pleaded guilty resided in various locations, including the United States, Spain, China, and Turkey. Jose Somarriba and Shengsheng He helped start “Axis Digital,” a fake company. They also opened a bank account at Deltec Bank in the Bahamas.

Jingliang Su was in charge and helped change the funds into USDT. Joseph Wong managed a money-hiding group, moving money to banks in other countries.

The U.S. Attorney’s Office stated the stolen money was for scam center leaders in Cambodia. Yicheng Zhang and Joseph Wong each face up to 20 years in prison for conspiracy to conceal money. The other three defendants each face up to five years for conspiracy to operate an illegal money business. Jingliang Su has remained in jail since November 2024, and the court scheduled his sentencing for November 17.

DOJ Probes Coinbase

CoinTab reported that the Department of Justice (DOJ) is conducting a criminal investigation into a recent cybersecurity breach at Coinbase Global Inc. The investigation is focused on whether someone inside the company was involved and if user data was exposed.

As part of the investigation, authorities are examining Coinbase’s statement that the breach happened because foreign customer service workers took bribes to share private information. They want to determine how attackers gained access by collaborating with support staff located outside the country.

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