Prison Sentence for Cryptocurrency Scam
Jingliang Su, a citizen from China, has received a prison sentence of 46 months due to his involvement in a scheme that defrauded victims of over $36.9 million through cryptocurrency scams. Su accepted a plea deal, admitting guilt to charges related to conspiracy and operating an unauthorized money transfer service. As part of his sentencing, he has been mandated to repay more than $26.8 million to those victims affected by the scams.
Comments from the Justice Department
Assistant Attorney General A. Tysen Duva from the Criminal Division of the Justice Department remarked on the case, emphasizing that Su, alongside accomplices, deceived 174 individuals in the United States, robbing them of their hard-earned savings. Duva pointed out that the internet facilitates new forms of fraudulent activities, highlighting a shift in how criminals exploit digital platforms for illicit gains.
Operation Details
The operation orchestrated by Su and his associates misled victims into believing they were investing in legitimate opportunities. Funds were funneled into accounts under their control, which were subsequently laundered using shell companies or international bank accounts. Victims, misinformed about the status of their investments, were falsely reassured that they were profiting.
“While intriguing on the surface, the world of new investment opportunities can conceal criminal activities like those that resulted in the misappropriation and laundering of vast sums from unsuspecting individuals,” stated Bill Essayli, First Assistant U.S. Attorney for California’s Central District.
Related Developments
In a related development, a co-defendant of Su, Californian Shengsheng He, was sentenced to 51 months in prison back in September for his participation in the fraudulent operation. Up to now, a total of eight individuals connected to this network have pleaded guilty.
Trends in Cryptocurrency Scams
A troubling trend has emerged as losses associated with cryptocurrency scams soared to over $17 billion last year, according to figures from Chainalysis, a blockchain analytics firm. Their analysis indicated that the growing influence of artificial intelligence has significantly fueled impersonation-related scams, leading to a staggering increase of 1,400%.
