- Jingliang Su was sentenced to 46 months for laundering over $36.9 million taken in crypto scams.
- He was ordered to pay more than $26.8 million in restitution; officials cite roughly $37 million in total losses tied to the ring.
- At least 174 Americans were defrauded; eight co‑conspirators have pleaded guilty and one, Shengsheng He, received 51 months.
- Scammers moved stolen funds through shell companies, international bank accounts, and converted them to Tether’s dollar‑backed stablecoin, USDT.
- Law enforcement highlighted evolving online threats; analytics firm Chainalysis estimates crypto scam losses topped $17 billion last year and links AI to a 1,400% rise in impersonation scams.
Jingliang Su, a Chinese national, was sentenced to 46 months in prison after pleading guilty to one count of conspiracy to operate an illegal money transmitting business for laundering more than $36.9 million taken from victims of cryptocurrency scams. A federal court also ordered Su to pay restitution exceeding $26.8 million for losses tied to the scheme. Prosecutors say the ring tricked victims into sending funds that co‑conspirators then moved abroad.
The group targeted Americans and convinced victims their investments were rising while stealing the money, officials said. At least 174 Americans lost funds, eight co‑conspirators have pleaded guilty to related charges, and California resident Shengsheng He received a 51‑month sentence for his role.
According to investigators, the conspirators funneled transfers into accounts they controlled, then laundered proceeds through shell companies and international bank accounts before converting a large portion into USDT. Victims were told their holdings were increasing, but the funds were diverted and converted into stablecoins.
“This defendant and his co-conspirators scammed 174 Americans out of their hard-earned money,” said Assistant Attorney General A. Tysen Duva, and “In the digital age, criminals have found new ways to weaponize the internet for fraud.” The official remarks were made in a statement.
“New investment opportunities may sound intriguing, but they have a dark side: attracting criminals who, in this case, stole then laundered tens of millions of dollars from their victims,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. Separate data from Chainalysis shows crypto scam losses rose to about $17 billion last year and that advances in AI helped drive a 1,400% increase in impersonation scams.
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