Chinese National Jailed to 46 Months for Laundering Millions of Dollars Stolen from American Investors

Cybersecurity: International Cryptocurrency Fraud Case

A Chinese national, Jingliang Su, has been sentenced to 46 months in prison for his involvement in a cryptocurrency fraud scheme targeting American investors.

On January 27, 2026, federal courts mandated Su to serve his sentence and pay $26.9 million in restitution to the victims. The scam affected 174 victims across the United States, resulting in a combined loss of $36.9 million through fraudulent digital asset investments.

The operation was based in Cambodia, where coordinated criminal networks executed elaborate schemes to deceive victims. These networks utilized social media, phone calls, text messages, and online dating services to establish false trust with potential victims. Subsequently, they promoted fake digital asset investment opportunities through counterfeit websites mimicking legitimate cryptocurrency trading platforms. This led victims to believe they were investing in genuine platforms, whereas funds were directly transferred to accounts controlled by the scam network.

The U.S. Department of Justice highlighted this case as an example of how criminals exploit internet and digital financial systems for large-scale fraud operations. Agencies such as the U.S. Secret Service, Homeland Security Investigations, and Customs and Border Protection worked in collaboration to dismantle the criminal network and trace the flow of stolen funds.

Money Laundering Infrastructure and Digital Asset Misuse

A key aspect of the operation was the sophisticated money laundering infrastructure established by Su. Victims' funds were initially sent to shell company bank accounts and then transferred to a single account at Deltec Bank in the Bahamas. The funds were converted into Tether (USDT), facilitating quick international transfers while circumventing traditional banking oversight.

The converted cryptocurrency was transferred to a digital asset wallet in Cambodia, where regional scam center leaders distributed the funds across Southeast Asia. This layered approach complicated law enforcement efforts to trace the money.

Su pleaded guilty in June 2025 to conspiracy to operate an unlicensed money transmitting business, underscoring his central role in managing the financial operations of this international fraud scheme. Eight co-conspirators have also pleaded guilty, with sentences ranging from 36 to 51 months in prison.

Based on reporting by Cyber Security News.