A Chinese national, Jingliang Su, has been sentenced to 46 months in prison for his involvement in a cryptocurrency scam that defrauded Americans of approximately $37 million. Su, who pleaded guilty to conspiracy charges related to operating an illegal money transmitting business, was also ordered to pay over $28 million in restitution.
The U.S. Department of Justice reported that Su was part of a larger scam ring that exploited at least 174 victims. Assistant Attorney General A. Tysen Duva emphasized the evolving tactics of criminals in the digital landscape, stating that they have increasingly weaponized the internet to perpetrate fraud.
The fraud scheme involved misleading victims into believing they were making legitimate investments. Instead, their funds were diverted to accounts managed by Su and his co-conspirators, who laundered the money through various shell companies and international bank accounts. Victims were falsely reassured that their investments were appreciating in value while the scammers converted the stolen funds into Tether”s dollar-backed stablecoin, USDT.
First Assistant U.S. Attorney Bill Essayli highlighted the dark side of enticing investment opportunities, noting that such schemes attract criminals targeting unsuspecting individuals. The case reflects a broader trend, as losses from crypto scams soared to over $17 billion in the previous year, driven in part by the rise of artificial intelligence which has facilitated a surge in impersonation scams.
Su”s sentencing adds to the growing list of individuals implicated in this fraud. His co-conspirator, California resident Shengsheng He, received a 51-month prison sentence last September. To date, a total of eight individuals associated with this scam have pleaded guilty.
This case underscores the ongoing challenges of cryptocurrency regulation and consumer protection, as the digital currency landscape continues to attract both legitimate investment and fraudulent schemes. As the industry evolves, so too must the measures to safeguard investors from deceitful practices.
