DOJ: 51 Months for $36.9M Crypto Scam Role

DOJ: 51 months for $36.9M crypto scam role with funds routed via Deltec Bank and subsequently sent to Cambodia. A further 8 people pleaded guilty, and a connection to Axis Digital Limited.

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Scam Infrastructure: From Bank Accounts to USDT and Wallets in Cambodia

So, the DOJ report shows that it all started with a classic scam with a hub in Cambodia. Accomplices directly contacted victims through messages on social media, phone calls, SMS, and online dating services, building trust and offering 'high returns' from digital investments. Naturally, the funds were simply misappropriated, and the final loss totaled $36.9M from U.S. accounts.

The entire amount was consolidated into a single account at Deltec Bank in the Bahamas, opened in the name of Axis Digital Limited. The organizers then instructed Deltec Bank to convert victims’ funds into the stablecoin USDT and transfer them to a digital wallet controlled by individuals in Cambodia. Then accomplices in Cambodia transferred USDT to the heads of scam centers across the region, including Sihanoukville.

Defendants, Guilty Pleas, and Procedural Results

• Key defendant – Shengsheng He, La Puente, California; former co-owner of Axis Digital Limited (Bahamas); pleaded guilty to "conspiracy to operate an unlicensed money transmitting business"; sentence: 51 months' imprisonment; $26.8M restitution; participated in consolidating funds and transferring them through corporate shells, international accounts, and digital wallets.

• Daren Li. Citizen of China and St. Kitts and Nevis; pleaded guilty to "conspiracy to commit money laundering"; coordinated/led segments of the money-laundering scheme.

• Lu Zhang. Citizen of China; was in the U.S. unlawfully; pleaded guilty to "conspiracy to commit money laundering"; management of a network of U.S.-based money launderers.

• Jose Somarriba. Co-founder of Axis Digital Limited, together with Shengsheng He; pleaded guilty to "conspiracy to operate an unlicensed money transmitting business."

• Jingliang Su. Citizen of China; joined the board of Axis Digital Limited; took part in digital asset conversion and transfers of victims' funds; pleaded guilty to "conspiracy to operate an unlicensed money transmitting business."

Conclusion

Crypto scams remain popular among attackers because, while technical blockchain infrastructure becomes more mature and secure, the human factor becomes an even greater vulnerability.

The investigation is still ongoing, but sentences are already quite severe. That is logical, since the scheme is large-scale, highly organized, and the $36.9M losses are substantial.

Be aware, and stay tuned for the latest updates in crypto, blockchain, and security.