A 44-year-old Chinese national, Zheng Zhao, was arraigned in federal court in California after the United States extradited him over a $36.9 million crypto scam that prosecutors say involved 174 victims. Zhao appeared before the Central District of California on Oct. 23, following his extradition from the Netherlands. The DOJ said the case traces back to an alleged investment fraud run from Cambodian scam centers, with a money laundering conspiracy charge dating to August 2025 and carrying a maximum prison term of 20 years. Prosecutors say overseas participants initially approached prospective victims through unsolicited social media messages, phone calls, text messages, and online dating services. After building trust, they allegedly pushed fraudulent digital asset investments through fake cryptocurrency trading platforms designed to look like legitimate exchanges. The alleged scheme worked by convincing victims their investments were growing, while money was allegedly diverted through cross-border financial networks. Prosecutors described transfers involving U.S. shell companies, international bank accounts, and digital asset wallets. More than $36.9 million moved from accounts controlled by co-conspirators to a single account at Deltec Bank in the Bahamas. Prosecutors say Zhao and other participants arranged for Deltec Bank to convert the funds into USDT stablecoin and transfer the tokens to a digital asset wallet in Cambodia. The DOJ alleges that co-conspirators there then transferred the USDT to leaders of scam centers. Eight co-conspirators have pleaded guilty, including ShengSheng He and Jingliang Su, who admitted conspiring to operate an unlicensed money transmitting business. He received 51 months in prison and Su received 46 months, according to the DOJ. The FBI said blockchain records can help trace cryptocurrency transfers, though movements into foreign jurisdictions can make follow-the-money work harder where anti-money laundering rules are weak. Zhao’s case is part of the Justice Department’s Cyber-Enabled Scam Initiative.