A federal court in the United States has handed down a 46-month prison sentence to Jingliang Su, a 45-year-old national from China, for his involvement in a massive laundering operation that siphoned tens of millions of dollars from victims of cryptocurrency scams. This sentencing is a direct result of Su”s guilty plea in connection with a sophisticated international fraud scheme known as “pig butchering,” which targeted American citizens.
U.S. District Judge R. Gary Klausner also mandated that Su pay restitution exceeding $26.8 million, illustrating the extensive financial damage inflicted by this elaborate operation. Su admitted to conspiring to run an illegal money transmitting business, confirming his participation in the movement of illicit funds generated by fraudulent cryptocurrency investments. Prosecutors revealed that the scheme laundered about $37 million, affecting at least 174 identifiable victims across the United States.
The operation employed long-term social engineering tactics, with perpetrators initially reaching out to potential victims via dating apps, social media, and unsolicited messages. Over time, trust was cultivated, leading victims to what seemed to be legitimate cryptocurrency investment platforms, which were, in fact, elaborate hoaxes.
Victims were directed to counterfeit cryptocurrency trading sites that mimicked real exchanges. These fraudulent platforms showcased fake account balances and non-existent profits, encouraging victims to deposit increasingly larger sums of money. Once these funds were transferred, the laundering process involved multiple stages. Initially, the money was funneled through shell companies based in the U.S., obscuring its illegal origins. Subsequently, the funds were channeled to an account at Deltec Bank in the Bahamas, registered under the name Axis Digital Limited.
The final phase of the laundering process converted the stolen money into Tether (USDT), after which the assets were dispatched to wallets controlled by scam operations in Cambodia, effectively severing ties with the U.S. financial system and placing the funds under the control of international criminal organizations.
Su is one of several co-conspirators facing legal consequences for their roles in this network. His case reflects a broader crackdown by U.S. authorities on the financial mechanisms supporting cryptocurrency-related fraud. This enforcement initiative aims not only at the scams themselves but also at dismantling the financial infrastructure, including money transmitters and shell companies, that facilitate such large-scale fraud.
As the landscape of pig-butchering scams continues to evolve, often leveraging digital assets, this case serves as a critical reminder that laundering proceeds from these schemes through international banking systems and stablecoin transactions can lead to significant legal repercussions, including lengthy prison sentences and substantial financial restitution.
