California Man Sentenced 51 Months for Laundering $37M in Global Crypto Scam

Shengsheng He, a California resident, was sentenced to 51 months in federal prison and ordered to pay nearly $27 million in restitution for his role in laundering approximately $37 million stolen from U.S. investors through a global cryptocurrency scam. He co-owned Axis Digital Limited, a Bahamas-based company that funneled victim funds through international bank accounts and crypto wallets, converting them into stablecoins to obscure their origin. The scam operated from Cambodian 'pig butchering' centers, where victims were deceived via unsolicited messages, phone calls, and dating apps with promises of high-return digital asset investments. Authorities described the scheme as part of a broader crackdown on foreign digital asset scams that exploit American investors. Acting Assistant Attorney General Matthew R. Galeotti emphasized the Justice Department's commitment to prosecuting such fraudsters regardless of their location, while officials warned the public to remain vigilant against unsolicited investment offers. This case highlights the sophisticated methods criminals use to launder illicit crypto funds and the growing efforts by U.S. law enforcement to combat these international fraud networks.