Chinese national extradited over alleged $36.9M crypto scam
The profits were fake, the losses were real, and the suspect may have to pay the ultimate price.
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- The Netherlands extradited Zheng Zhao to the US over an alleged international crypto investment scam.
- Prosecutors say the scam targeted 174 US victims and caused more than $36.9 million in losses.
- The network allegedly used fake trading websites to show false gains while stealing victims’ money.
Key Takeaways by nexos.ai, reviewed by Cybernews staff.
The Netherlands has extradited a Chinese national to the United States over his alleged involvement in an international cryptocurrency investment scam targeting 174 US victims and causing over $36.9 million in damages.
According to court documents, Zheng Zhao, a 44-year-old man from China, was a member of an international criminal network that operated from scam centers in Cambodia.
In August 2025, prosecutors charged Zhao with conspiracy to commit money laundering. On October 23rd, 2026, he appeared in the Central District Court of California after being extradited from the Netherlands.
Members of the criminal network contacted victims through unsolicited social media interactions, phone calls, text messages, and online dating services to build trust before promoting their fraudulent cryptocurrency investment scam.
Zhao and his co-conspirators created fake websites that looked like genuine cryptocurrency trading platforms and used them to convince victims to send money for investment opportunities.
The platforms displayed purported investment gains to convince victims that their money was growing, while in reality, the funds had already been stolen.
International scheme
Investigators found that over $36.9 million was transferred from US bank accounts controlled by Zhao’s co-conspirators to a single account at Deltec Bank in the Bahamas.
Next, the funds were converted into Tether (USDT), a stablecoin pegged to the US dollar, before being transferred to a digital asset wallet controlled in Cambodia. From there, co-conspirators transferred the USDT to the leaders of scam centers throughout the region.
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“As crime has globalized, so has law enforcement’s ability to locate and catch criminals. When innocent Americans are harmed by cybercriminals and their enablers, we and our partners around the globe will relentlessly ensure they face justice in a US courtroom,” First Assistant US Attorney Bill Essayli for the Central District of California said in a statement.
So far, 8 co-conspirators have pleaded guilty to their role in the cryptocurrency investment scam. If Zhao is convicted, he faces a maximum penalty of 20 years in prison.
