Zheng Zhao arraigned in California after extradition in alleged cryptocurrency scam case

Zheng Zhao, a Chinese national, was arraigned in the Central District of California on October 23, 2026, after being extradited from the Netherlands, according to the US Justice Department. Prosecutors allege he took part in a cryptocurrency investment and money-laundering conspiracy run through scam centers in Cambodia that targeted Americans.

The department said investigators identified 174 US victims. It alleges that more than $36.9 million in victim funds passed from US bank accounts controlled by co-conspirators to a single account at Deltec Bank in the Bahamas. Those figures are the government’s account of the case, and the charge against Zhao has not been proved in court.

How prosecutors say the money moved

Prosecutors allege that Zhao and others arranged for Deltec Bank to convert victim funds into Tether, known as USDT, and send it to a digital-asset wallet controlled in Cambodia. Co-conspirators there allegedly transferred the USDT to scam-center leaders elsewhere in the region. The alleged route through bank accounts and digital wallets is central to the money-laundering charge against Zhao.

Where Zhao’s case stands

Zhao, 44, was charged in August 2025 with conspiracy to commit money laundering. He faces a maximum of 20 years in prison if convicted. The Justice Department said eight co-conspirators have pleaded guilty; among them, ShengSheng He and Jingliang Su received prison sentences of 51 and 46 months, respectively, after pleading guilty to conspiracy to operate an unlicensed money-transmitting business. Those pleas and sentences do not establish Zhao’s guilt.

The US Secret Service is investigating the case. The Justice Department said it worked with Dutch authorities to secure Zhao’s arrest and extradition. Zhao is presumed innocent unless proven guilty beyond a reasonable doubt.

The wider Southeast Asian scam-center problem

A September 2026 Congressional Research Service report describes scam centers in Southeast Asia, including Cambodia, using fake cryptocurrency investments and romantic overtures to solicit payments. It says the illicit nature of the operations and victims’ underreporting make their overall reach difficult to measure. That regional context does not independently establish the allegations in Zhao’s case.