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A Chinese national was sentenced to 46 months in federal prison on January 27 for operating a cryptocurrency money laundering scheme that defrauded nearly 174 Americans of approximately $37 million through fake investment platforms and romance scams.
Jiangling Su, 45, pleaded guilty to conspiracy to operate an illegal money-transmitting business after prosecutors linked him to a network that converted stolen funds into Tether’s USDT and moved them to co-conspirators in Southeast Asia.
According to the U.S. Attorney’s Office for the Central District of California, Su was sentenced to 46 months in federal prison on January 27 by U.S. District Judge Gary Klausner.
The crypto laundering scam involved a sophisticated web of shell companies, international bank accounts, and digital asset wallets used to conceal stolen funds.
Prosecutors say victims were lured through online dating apps, unsolicited calls, and text messages, where scammers pitched fake crypto investment opportunities.
These victims were directed to fraudulent websites posing as legitimate crypto trading platforms, a classic hallmark of a modern crypto laundering scam.
Court filings reveal that more than $36.9 million was funneled through an account at Deltec Bank in the Bahamas before being converted into Tether’s USDT, a popular stablecoin often exploited in cross-border financial crimes.
From there, the crypto laundering scam expanded further. Funds were routed to co-conspirators based in Cambodia, who transferred the USDT to scam leaders operating across Southeast Asia.
Throughout the process, victims were falsely told their investments were growing — when in reality, their money had already been stolen.
Assistant Attorney General Tysen Duva of the Justice Department’s Criminal Division warned that criminals are increasingly weaponizing digital tools to commit fraud.
“Criminals in the digital age are finding new ways to exploit the internet for fraud,” Duva said, adding that the crypto laundering scam used social media, fake websites, and crypto rails to move stolen funds outside the U.S.
Duva emphasized that law enforcement agencies are adapting quickly, having dismantled multiple large-scale operations that rely on cryptocurrency and wire transfers to hide illicit proceeds.
First Assistant U.S. Attorney Bill Essayli stressed that while crypto innovation continues, fraudsters are exploiting the hype.
“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,” Essayli said.
Essayli praised U.S. law enforcement efforts and urged investors to exercise caution, noting that prevention remains the strongest defense against any crypto laundering scam.
The investigation was coordinated by the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) alongside domestic and international partners.
Authorities say they are aggressively seizing crime-linked crypto assets and dismantling the digital infrastructure behind each crypto laundering scam.
Since 2020, CCIPS has secured over 180 cybercrime convictions and court orders returning more than $350 million to victims.
Additional support came from the U.S. Secret Service’s Global Investigative Operations Center, Homeland Security Investigations, the U.S. Marshals Service, and international partners including the Dominican National Police.
The prosecution team included Assistant U.S. Attorney Nisha Chandran, Trial Attorney Stephanie Schwartz, and officials from the Fraud and National Security divisions — underscoring how seriously U.S. authorities are treating large-scale crypto laundering scam operations.
As regulators tighten oversight and prosecutors pursue international coordination, this case sends a clear warning: crypto laundering scams are no longer operating in the shadows — and accountability is catching up fast.
