U.S. Department of Justice Announces Guilty Pleas in International Digital Asset Investment Scam Conspiracy

Strategic Insights -

A sprawling international digital asset investment scam conspiracy has resulted in guilty pleas from multiple conspirators, including Joseph Wong, 33, of Alhambra, California; Yicheng Zhang, 39, of China; Jose Somarriba, 55, of Los Angeles; Shengsheng He, 39, of La Puente, California; and Jingliang Su, 44, of China and Turkey. According to court documents, these individuals, along with eight co-conspirators, participated in a scheme that induced U.S. victims to transfer funds to accounts controlled by co-conspirators, laundering over $36.9 million through U.S. shell companies, international bank accounts, and digital asset wallets.

Key Takeaways:

  • A total of nine conspirators have pleaded guilty, including Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng He, and Jingliang Su.
  • The conspiracy involved laundering over $36.9 million from U.S. victims who were led to believe they were investing in digital assets.
  • Co-conspirators residing overseas contacted U.S. victims through unsolicited social media interactions, telephone calls, text messages, and online dating services, gaining their trust.
  • The conspirators used U.S. shell companies, international bank accounts, and digital asset wallets to launder victim funds, ultimately transferring $36.9 million to a single account at Deltec Bank in the Bahamas.
  • Somarriba, He, and Su directed Deltec Bank to convert victim funds to the stablecoin Tether (USDT) and transfer the converted funds to a digital asset wallet controlled by individuals in Cambodia.
  • Wong managed a network of money launderers in Los Angeles, registering shell companies, opening U.S. bank accounts, and wiring victim funds to international bank accounts.
  • Zhang pleaded guilty to money laundering conspiracy and faces a maximum penalty of 20 years in prison.
  • He, Somarriba, and Su pleaded guilty to conspiracy to operate an unlicensed money services business and each face a maximum penalty of five years in prison.

Statistics:

  • Over $36.9 million was laundered from U.S. victims.
  • Nine conspirators have pleaded guilty so far.
  • Eight co-conspirators have been identified, including Daren Li, a national of China and St. Kitts and Nevis, and Lu Zhang, a Chinese national illegally in the United States.
  • Zhang has been in custody since May 2024, and Su has been in custody since November 2024.
  • A total of 11 individuals are currently facing charges or have pleaded guilty in connection with this conspiracy.

Sources:

  • U.S. Department of Justice
  • Court documents
  • Matthew R. Galeotti, Head of the Justice Department's Criminal Division
  • U.S. Attorney Bilal A. Essayli for the Central District of California
  • Special Agent in Charge William Mancino of the U.S. Secret Service (USSS) Criminal Investigative Division
  • USSS's Global Investigative Operations Center
  • The Homeland Security Investigations' El Camino Real Financial Crimes Task Force
  • Customs and Border Protection's National Targeting Center
  • U.S. Department of State's Diplomatic Security Service
  • Dominican National Police
  • U.S. Marshals Service