Shengsheng He, a California resident was sentenced today to 51 months in federal prison for helping launder more than $36,900,000 stolen from victims of an international digital asset investment scam run from Cambodia. 

The court also ordered the man to pay $26,867,242.44 in restitution to people who lost money in the fraud.

Justice Department’s statement

Officials said the defendant was part of a conspiracy that targeted American investors with false promises of high returns on digital assets. Acting Assistant Attorney General Matthew R. Galeotti said the group used Cambodian scam centres to trick U.S. victims. 

He stressed that fake digital asset investment platforms have spread widely and that the department will continue to pursue those who steal from American citizens, even if they operate overseas.

Acting U.S. Attorney Bill Essayli also noted that the case shows how scams can begin with something as simple as replying to an unsolicited message. 

He urged the public to be cautious when strangers approach them with supposed investment offers, warning that life savings and retirement funds can be at risk.

Also Read: Victim Falls For Massive Theft of 783 $BTC ($91M), Scammer Impersonated Customer Support

Details of the conspiracy

The defendant, 39-year-old Shengsheng He of La Puente, was a co-owner of Axis Digital Limited, a company based in the Bahamas. Earlier this year, he entered a guilty plea to conspiracy to run an unauthorized money transmission company. 

According to court documents, He worked with others to receive stolen money from U.S. victims and move it through shell companies, banks, and digital wallets.

Investigators said victims were contacted through social media, text messages, phone calls, and even dating services. 

The con artists advised victims to invest in digital assets after establishing trust. Victims were led to believe their accounts were growing in value when, in fact, the money had already been stolen.

How were the funds moved?

The conspirators transferred more than $36,900,000 from U.S. bank accounts to a single account at Deltec Bank in the Bahamas. Axis Digital was the name under which that account was established. 

He and his partners then instructed the bank to convert the stolen money into Tether (USDT). The USDT was transferred to a wallet managed by individuals in Cambodia. From there, the funds went to scam centre leaders in the region, including those based in Sihanoukville.

Other guilty pleas

In the United States, eight co-conspirators have already entered guilty pleas. Among them are Lu Zhang, a Chinese national who oversaw a money-laundering network in the United States, and Daren Li, a Chinese and St. Kitts and Nevis national who has been detained since April 2024.

Late last year and early this year, Li and Zhang entered guilty pleas to conspiracy to commit money laundering.

Axis Digital was co-founded by him and Jose Somarriba. Later, Jingliang Su, another Chinese national, became a director of the business.

Earlier this year, Somarriba and Su entered guilty pleas to conspiring to run an unauthorised money-transfer company. Prosecutors said they helped manage the conversion and transfer of victim funds.

Wider warnings about scams

The case highlights the continued danger posed by international crypto scams. Richard Teng, the CEO of Binance, recently warned the community about criminals pretending to be exchange support staff. 

According to Teng, scammers are now spoofing phone numbers or using VOIP calls to appear legitimate, tricking users into handing over sensitive information.

This case highlights how criminal groups use technology, operate abroad, and make false promises to commit large-scale fraud.

Also Read: Venus Protocol User Loses Approximately $27 Million In Crypto Due To Phishing Scam