Fraudster Launders $36,900,000 in Proceeds of Crypto Scam That Preyed on American Investors, Sentenced to 51 Months in Prison

A California man was sentenced to 51 years in prison for helping launder more than $36.9 million conned from victims in an international crypto scam.

Shengsheng He, 39, pleaded guilty earlier this year to conspiracy to operate an unlicensed money transmitting business.

In addition to prison time, the scammer was also ordered to pay more than $26.8 million in restitution to victims.

The U.S. Department of Justice (DOJ) says the conspiracy was carried out via scam centers in Cambodia. Shengsheng He was part of an international criminal network that tricked American victims into believing they were investing in crypto.

Through texts, phone calls, social media and dating apps, the perpetrators contacted victims and gained their trust. They would then convince victims to invest in fraudulent crypto projects and lie about the supposedly appreciating value of their investments.

The men transferred $36.9 million in victim funds to a single account at Deltec Bank in the Bahamas under the name of “Axis Digital Limited.”

The funds were then funneled to USDT wallets controlled by individuals in Cambodia. The DOJ says co-conspirators in Cambodia then sent the stablecoin holdings to the leaders of scam centers throughout the region, including in Sihanoukville, a coastal gambling city that’s a hotspot for scam factories.

 

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