CALIFORNIA – The U.S. Department of Justice (DOJ) announced September 8 that a man was sentenced to 51 months in federal prison for his role in laundering over $36.9 million from victims in an international crypto investment scam based in Cambodia.
Shengsheng He, 39, of La Puente, was sentenced by Judge R. Gary Klausner to prison and ordered to pay $26.9 million in restitution. He pleaded guilty April 10 to conspiracy to operate an illegal money-transmitting business.
Court documents say He joined an international network that lured U.S. victims to send funds, which were laundered through shell companies, foreign banks, and digital wallets.
Overseas co-conspirators contacted U.S. victims through social media, calls, texts, and dating sites to gain their trust. They then pitched victims fraudulent digital asset investments.
Scammers falsely claimed victims’ investments were growing, while the funds had actually been stolen.
Over $36.9 million in victim funds were moved from U.S. accounts to a Deltec Bank account in the Bahamas, converted to Tether (USDT), and transferred to digital wallets in Cambodia, then distributed to scam center leaders in the region.
Victims responded unsolicited messages on phones
Eight co-conspirators have pleaded guilty so far.
He co-founded Axis Digital with defendant Jose Somarriba. Chinese national Jingliang Su, an Axis Digital director, helped convert and transfer victim funds.
Somarriba and Su pleaded guilty to conspiracy to operate an unlicensed money-transmitting business on April 14 and June 9, respectively.
Acting U.S. Attorney Bill Essayli said He will spend years in prison for a conspiracy that stole tens of millions of dollars from victims who responded to unsolicited messages on their phones.
“The public should always remember to be vigilant and wary of strangers marketing promising investment opportunities. Your retirement fund or children’s college money may depend on it,” said Essayli.
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