BleepingComputer reports that an international money laundering ring involving cryptocurrency scams has resulted in five men pleading guilty to laundering nearly $37 million stolen from U.S. victims.
Operating from Cambodia, the scheme, often referred to as pig butchering, relied on social media, text, and dating apps to lure Americans into fraudulent digital asset investments. Victims were misled into thinking their money was growing in value, but funds were instead funneled through shell companies and foreign banks. Key players included Joseph Wong, who managed a laundering network in Los Angeles, and Yicheng Zhang, who oversaw bank accounts used to clean the stolen money. Other members helped create Axis Digital Limited, open bank accounts in the Bahamas, and transfer the money as USDT cryptocurrency to Cambodia. Eight conspirators have pleaded guilty so far, including Zhang and Daren Li, who were accused of laundering over $73 million. The FBI warns that crypto scams surged in 2024, with losses topping $6.5 billion.
Operating from Cambodia, the scheme, often referred to as pig butchering, relied on social media, text, and dating apps to lure Americans into fraudulent digital asset investments. Victims were misled into thinking their money was growing in value, but funds were instead funneled through shell companies and foreign banks. Key players included Joseph Wong, who managed a laundering network in Los Angeles, and Yicheng Zhang, who oversaw bank accounts used to clean the stolen money. Other members helped create Axis Digital Limited, open bank accounts in the Bahamas, and transfer the money as USDT cryptocurrency to Cambodia. Eight conspirators have pleaded guilty so far, including Zhang and Daren Li, who were accused of laundering over $73 million. The FBI warns that crypto scams surged in 2024, with losses topping $6.5 billion.
