World · North America · 1 hr ago
Chinese national extradited to US over alleged $37 million investment scam
Zheng Zhao, 44, was extradited from the Netherlands to the United States and appeared in a California federal court.
Prosecutors accuse him of helping launder money from a cryptocurrency investment scam targeting US residents.
The alleged operation used social media, calls, texts and dating sites to build trust, then steered victims to fake investment platforms.
At least 174 people lost nearly $37 million, which prosecutors say was moved through a Bahamas bank account and converted into cryptocurrency.
The money was then sent to digital wallets in Cambodia and distributed to leaders of scam networks in Southeast Asia.
Zhao is the ninth person charged in the scheme; eight co-conspirators have pleaded guilty, and two received prison sentences.
He faces up to 20 years in prison if convicted of conspiracy to commit money laundering.
Zheng Zhao, a 44-year-old Chinese national, was extradited from the Netherlands to the United States and arraigned in California on a money-laundering conspiracy charge.
Prosecutors allege he helped move funds stolen in an investment scam that targeted at least 174 U.S. residents and involved nearly $37 million.
The alleged scheme used social media, calls, texts and dating sites to build trust before directing victims to fake cryptocurrency investment platforms.
Prosecutors say victim funds were sent to an account at Deltec Bank in the Bahamas, converted to cryptocurrency and moved to wallets controlled in Cambodia.
Zhao faces up to 20 years in prison if convicted.
- Who
- Zheng Zhao, a 44-year-old Chinese national, was extradited and charged. Prosecutors allege he helped launder the funds.
- What
- He faces one count of conspiracy to commit money laundering tied to an alleged investment scam.
- When
- He was extradited and arraigned on Friday. He was charged in August 2025.
- Where
- Zhao was extradited from the Netherlands and appeared in a California district court. The alleged scheme involved scam centers in Cambodia and a bank account in the Bahamas.
- Why
- Prosecutors allege he helped transfer and launder money stolen from U.S. residents through fake investment services.
This story does not have two clearly opposing sides.
Zhao was charged with conspiracy to commit money laundering.
Zhao was extradited from the Netherlands and arraigned in a California district court.
- Accused
- Zheng Zhao, 44
- Victims
- At least 174 U.S. residents
- Funds
- At least $36.9 million transferred to a Deltec Bank account
- Potential sentence
- Up to 20 years in prison if convicted
- Co-conspirators
- Eight others pleaded guilty to money laundering charges
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What people are saying
This case should serve as a warning to scammers in every corner of the world: there is nowhere to hide