California man sentenced to 51 months for $36.9M crypto fraud

The U.S. Department of Justice has announced the sentencing of a 39-year-old La Puente, California man involved in an international crypto investment scam. He was given 51 months in prison and ordered to pay more than $26.8 million in restitution. The scheme caused $36.9 million in total losses.

Investigators found he co-owned Axis Digital Limited, a Bahamas-based company that helped funnel victims’ funds through Deltec Bank. The money was then converted into USDT and transferred to wallets controlled by organizers in Cambodia, particularly in Sihanoukville.

The fraudsters contacted U.S. victims via social media, phone calls, messaging apps, and dating sites, offering “high-yield crypto investments.” They showed fake returns while siphoning funds overseas.

“Unfortunately, the number of foreign fraud centers promoting digital asset investments has sharply increased. Our division is committed to holding accountable those who steal from American investors, wherever they may be located,” said Acting Assistant Attorney General Matthew R. Galeotti.

Others charged in connection with the scheme include Darren Li, Lu Zhang, Jose Somarriba, and Jinliang Su, who helped transfer and launder funds.

The investigation was coordinated by the U.S. Secret Service and multiple federal agencies. The DOJ highlighted that since 2020, more than 180 cybercriminals have been convicted in the U.S., with over $350 million returned to victims.