Zheng Zhao extradited to US in case tracing more than $36.9 million through bank accounts and crypto

The record

Zheng Zhao, a 44-year-old Chinese national, was arraigned in the Central District of California on 23 October after extradition from the Netherlands in a cryptocurrency investment-fraud investigation, the US Justice Department said. He was charged in August 2025 with conspiracy to commit money laundering. [1]

The new development is his transfer to the United States and court appearance, not the discovery of a new $36.9 million loss. Prosecutors say the wider scheme operated from scam centres in Cambodia and that investigators identified 174 US victims. Zhao remains presumed innocent. [1]

From investment pitches to a Bahamas account

According to the department, overseas participants approached prospective victims through social media, calls, messages and dating services, then promoted fictitious digital-asset investments. Fake trading websites and claims of rising investment values allegedly helped persuade victims to send money. [1]

Prosecutors say more than $36.9 million moved from US accounts controlled by participants to a single account at Deltec Bank in the Bahamas. Zhao and others allegedly arranged conversion into Tether's USDT stablecoin and transfer to a wallet controlled in Cambodia, followed by onward transfers to scam-centre leaders. The figure describes the alleged movement of victim funds; it is not Zhao's personal profit or an announced recovery. [1]

The department's earlier sentencing announcement for Shengsheng He identifies the Bahamas account as held in the name of Axis Digital Limited and describes He as a former co-owner of that company. This adds a corporate link to the transfer route described in the latest release. [2]

The mention of Deltec Bank and USDT in that route does not amount to a charge against the bank or Tether. The announcement reports a criminal charge against Zhao, not a finding of liability against every institution through which money passed. [1]

Earlier convictions and the limits of recovery figures

Eight co-conspirators have pleaded guilty, according to the latest announcement. He received 51 months in prison in September 2025; Jingliang Su received 46 months in January 2026. Both pleaded guilty to conspiracy to operate an unlicensed money-transmitting business. Their pleas and sentences do not establish Zhao's guilt. [1][2][3]

The two sentencing announcements each report restitution of $26,867,242.44. Those figures should not be added together as separate victim losses or described as cash already returned. A restitution order establishes an obligation to pay; the announcements do not establish that the full sums were collected. [2][3]

Zhao faces a statutory maximum of 20 years if convicted. The latest release contains no defence response and does not state his plea. This report relies on the department's public accounts, rather than independent examination of the underlying bank records or court filings. [1]

Based on reporting from: US Department of Justice — Zheng Zhao extradition and arraignment, 23 October 2026; US Department of Justice — Shengsheng He sentencing, 8 September 2025; US Department of Justice — Jingliang Su sentencing, 27 January 2026; Photo source — Mark Youso / Pexels; Photo licence — Pexels License.