Five men sought off their duties in a $ 36.9 million International Crypto scam scam that targeted Americans, with funds that were eventually sent to a crypto scam center in Cambodia.
Crypto scammers use shell companies and US bank accounts to drake stolen funds before converting them to Tether (USDT) and send it to a crypto wallet controlled in Cambodia, the US attorney’s office for the California Central District Says on Monday.
The guilty pleasures reflect the US government’s eruption in crypto scams and money laundering rings operating outside Asia, especially those linked to the Lazarus-supported group of North Korea.
The defendants, Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng he and Jingliang Su, were in contact with the victims directly through social media, messaging platforms and meeting apps, participating in the lengthy text and even calling the victims to win their confidence and convince them to invest in their investment.
“Scammers will tell the victims that their investments are appreciated when, in fact, those funds have been stolen and not invested,” the DOJ said.
The five men who sought sin were scattered throughout the US, Spain, China and Turkey.
How the crypto laundering ring is operated
Somarriba and the Shell company “Axis Digital” founded and opened a Deltec bank account in Bahamas, which was used to receive the victims’ funds.
Su worked as a director and helped convert victims of victims to USDT, while Wong ran a Money Laundering Network and wired victims of the victim in international bank accounts.
Zhang also managed two US bank accounts used to process prohibited funds.
The stolen funds were eventually sent to the leaders of scam centers in Cambodia, the US lawyer’s office said.
Crypto scammers face years in prison
Zhang, who has been in custody since May 2024, and Wong has faced 20-year prison for money conspiracy charges that they have sought.
The other three men may also receive up to five years in prison for seeking a conspiracy to operate an unlicensed money service business, the US attorney’s office said.
Related: The Crypto Exec has run a ‘Covert Pipeline for Dirty Money,’ says DOJ
SU has been in custody since November 2024 and has a hearing scheduled for November 17.
Eight people now seek crimes tied to the crypto scam operation, including Daren Li and Lu Zhang, who both sought the fault of the money laundering charges last year.
US Treasury wants to cut Huione into crypto crime relationships
It came as the US Treasury Department was looking to block Cambodia-based Huione Group from access to the American Banking System, accusing the firm of helping North Korea sponsored Lazarus Group Launder Cryptocurrency.
The Treasury’s financial crime implementation network suggested To prohibit financial institutions from accessing letters or paying-through accounts tied to the Huione Group on May 1st.
Huione Group has established itself as “market of choice for malicious cyber actors” such as Lazarus Group, with “stealing billions -billions of dollars from sunny Americans,” US treasury secretary Scott bet said at that time.
On May 13, an affiliate of the Huione Group, Haowang guarantee, as if it had Communications are closed In the Telegram – which is where it is very much hopeful to organize its launch activities.
However, the crypto analytics firm TRM Labs Says It found transactions and behaviors between Huione guarantee and another telegram-based guarantee service, Xinbi, suggesting that it found a way to prevent the ban.
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