A man accused of helping move money stolen from Americans through fake investment sites is now facing charges on U.S. soil.
Zhao Zheng, a Chinese national extradited from the Netherlands, appeared in federal court in Los Angeles on Friday, Oct. 23, 2026, over his alleged role in a crypto scam that targeted 174 Americans through scam centers in Cambodia.
What is Zhao Zheng accused of?
Zhao, 44, was charged in August 2025 with conspiracy to commit money laundering. He was ordered held in custody and is scheduled to be arraigned Nov. 30, according to the U.S. Attorney’s Office for the Central District of California. Extradition from the Netherlands required approval from Dutch authorities, a process that can take months.
He has not been convicted, and he is presumed innocent unless proven guilty. It was not immediately clear whether he has an attorney who could comment.
A senior Justice Department official said the extradition should be a lesson to anyone who tries to exploit vulnerable Americans from overseas. The department will pursue defendants anywhere in the world, he said, especially those accused of converting stolen money into cryptocurrency and using foreign banks to hide it.
How did the crypto scam work?
According to court documents, the network first contacted people through social media, phone calls, text messages and online dating services to build trust. Scammers in such schemes often contact victims with messages that appear to be sent by mistake before striking up a friendship.
Once victims felt comfortable, the crypto scam moved to the next stage. Scammers persuaded them to invest through fraudulent websites designed to look like real trading platforms. Victims believed their money was growing, but it was being taken.
This kind of crypto scam often plays out over weeks or months, with scammers posing as friends or romantic partners before steering victims toward fake investments.
Have others in the crypto scam been convicted?
Yes. Eight others charged in the scheme have pleaded guilty.
They include He ShengSheng of La Puente, California, who was sentenced to 51 months in prison in September 2025, and Su Jingliang, a resident of the United Arab Emirates, who was sentenced to 46 months in January. Both pleaded guilty to conspiracy to operate an unlicensed money transmitting business. The guilty pleas came as prosecutors worked to trace the flow of money through accounts in the United States and overseas.
Prosecutors have said the network laundered nearly $37 million from victims, according to earlier reports.
Why are scam centers in Cambodia a concern?
Scam compounds in Cambodia, Myanmar and other parts of Southeast Asia have become a major source of online fraud aimed at Americans. Many are staffed by workers who were trafficked and forced to run scams, according to the United Nations and rights groups.
In 2025, U.S. authorities seized billions of dollars in bitcoin tied to a Cambodian conglomerate accused of running scam compounds. The case was described at the time as one of the largest financial seizures in U.S. history.
Americans lose billions of dollars a year to cryptocurrency investment fraud, according to FBI data. Many victims are older adults, and some lose their life savings.
How can people avoid a crypto scam?
To avoid a crypto scam, be wary of anyone met online who quickly brings up investing, especially in cryptocurrency. Verify trading platforms independently, never send money to someone you have not met in person and report suspected fraud to the FBI’s Internet Crime Complaint Center.
Zhao’s case will now move forward in federal court, where prosecutors will try to prove his role in the crypto scam. His next court date is the arraignment set for Nov. 30.
