Federal Prison Sentence for Cryptocurrency Scam
A Chinese individual, Jingliang Su, is set to serve time in a federal prison after his guilty plea in a large-scale cryptocurrency investment scam that defrauded 174 individuals out of approximately $36.9 million. The U.S. Department of Justice announced that Su has been sentenced to 46 months behind bars and is required to pay restitution totaling $26,867,242.44 as part of the terms of his sentencing.
Details of the Fraudulent Operation
The fraudulent operation was orchestrated from various scam centers located in Cambodia. Su and his associates employed a variety of deceptive tactics, including unsolicited communication via social media, phone calls, and even online dating platforms, to foster trust with potential victims. After gaining their confidence, they directed these individuals to elaborate fake cryptocurrency trading websites where victims were led to believe they were making legitimate investments.
In reality, the funds deposited by these victims were quickly transferred to accounts under the defendants’ control, with no legitimate investments made. The stolen funds were then funneled through a shell company based in the United States and an account with Deltec Bank in the Bahamas. The participants in the fraud converted the illicit gains into Tether (USDT), a stablecoin, subsequently moving these funds into digital wallets that supported their operations in Cambodia.
Legal Consequences and Warnings
The investigation into this fraudulent scheme has resulted in eight other conspirators entering guilty pleas, with some receiving sentences ranging from 36 to 51 months in federal prison. First Assistant U.S. Attorney Bill Essayli of the Central District of California emphasized the risks associated with seemingly attractive investment opportunities, highlighting their potential to lure criminals who exploit such vulnerabilities. He praised the collaborative efforts of law enforcement in pursuing justice for the victims, urging the public to exercise caution when considering investment opportunities, stating:
“An ounce of prevention is worth a pound of cure.”
