A California man was sentenced to 51 months in federal prison on September 8, 2025, for laundering over $36.9 million in funds stolen from U.S. victims through an international cryptocurrency investment scam.
Shengsheng He, 39, of La Puente, California, pleaded guilty in April to conspiracy to operate an unlicensed money transmitting business. He co-owned Axis Digital Limited, a shell company based in the Bahamas, which was used to move stolen funds to international accounts and convert them into Tether (USDT), a stablecoin, before routing them to digital wallets controlled by scam operators in Cambodia.
“The defendant was part of a group of co-conspirators that preyed on American investors by promising them high returns on supposed digital asset investments when, in fact, they stole nearly $37 million from U.S. victims using Cambodian scam centers,” said Acting Assistant Attorney General Matthew R. Galeotti.
Victims were led to believe their investments were growing in value when, in reality, their funds were quickly siphoned into offshore accounts. As per the release, over $36.9 million was funneled into a single Axis Digital account at Deltec Bank in the Bahamas, then transferred into crypto wallets managed by individuals in Sihanoukville, Cambodia.
The court ordered Shengsheng to pay $26.87 million in restitution. So far, eight co-conspirators have pleaded guilty, including Jose Somarriba and Jingliang Su, who helped manage fund transfers and digital asset conversions.
The case is part of the DOJ’s broader crackdown on crypto-related fraud, which has included asset seizures and restitution efforts linked to investment fraud and terrorist financing.
