Zheng Zhao Extradited to U.S. in Case Involving More Than $36.9M in Victim Funds

Zheng Zhao, 44, was extradited from the Netherlands and arraigned in the Central District of California on Oct. 23 as U.S. prosecutors accused him of helping move funds from a crypto investment scam targeting U.S. citizens.

Prosecutors allege the scheme operated from scam centers in Cambodia. Members contacted victims through social media, phone calls, text messages and dating platforms, then directed them to websites impersonating legitimate crypto trading platforms. The scammers told victims their investments were gaining value.

More than $36.9 million in victim funds from U.S. bank accounts controlled by the network went to a single account at Deltec Bank in the Bahamas. Prosecutors allege Zhao and co-conspirators arranged for Deltec Bank to convert the funds into Tether (USDT) and transfer them to a digital asset wallet controlled in Cambodia. Co-conspirators in Cambodia then sent the USDT to scam-center leaders around the region.

The government identified 174 U.S. victims, and eight alleged co-conspirators have pleaded guilty. Zhao faces up to 20 years in federal prison if convicted. He is presumed innocent unless found guilty.