Fake exchange scam exposed! Online dating誘 investment money laundering $37 million caught

45-year-old Chinese citizen Jingliang Su has been sentenced to nearly 4 years in federal prison and ordered to pay $26,000,000 for participating in a $37,000,000 cross-border cryptocurrency money laundering scam. The organization used fake trading platforms and online dating to lure 174 U.S. victims. After converting funds through Bahamian banks into USDT, the money flowed to a Cambodian scam center, highlighting the organized nature of transnational crypto crimes.

The Sophisticated Money Laundering Process of Global Crime Networks

According to a statement from the U.S. Central District Attorney’s Office, Jingliang Su is a key member of a transnational criminal network that designed cryptocurrency investment scams targeting U.S. citizens. This money laundering case is far more complex than typical scams, involving multiple layers of fund transfers and identity concealment mechanisms.

Prosecutors allege that Su’s criminal group operates in a highly organized manner. First, accomplices actively contact potential victims within the U.S. via SMS, phone calls, and online dating platforms. These contacts are not random but carefully crafted social engineering attacks. Criminals first build trust, especially in online dating scenarios, spending weeks or even months cultivating relationships to lower victims’ guard.

Once trust is established, the scam enters the second phase. Criminals promote fake cryptocurrency investment opportunities, claiming high returns. To enhance credibility, they create highly professional-looking fake websites mimicking legitimate crypto trading platforms, including real-time price charts, trading interfaces, and customer service features. Victims are directed to these fake platforms to “invest,” and initially see their account balances grow—though these figures are entirely fictitious.

Money Laundering Pathways

First layer: Victims transfer funds into bank accounts controlled by the criminal group in the U.S.

Second layer: Funds are obfuscated through shell companies in the U.S.

Third layer: Transferred to Deltec Bank accounts in the Bahamas, exchanged into USDT.

Fourth layer: USDT transferred to digital wallets controlled by scam leaders in Cambodia.

This multi-layered laundering structure aims to break the traceability of funds. Using stablecoins like USDT is a key strategy because the anonymity and cross-border liquidity of cryptocurrencies make law enforcement tracking extremely difficult. Deltec Bank, as an offshore bank in the Bahamas, has relatively lax regulation, making it an ideal conduit for laundering. Once converted into USDT, funds can be quickly liquidated or reinvested at any global crypto exchange, further severing ties to the original source.

Prosecutors state that over $36,900,000 flowed through this laundering pipeline, with Cambodian co-conspirators distributing USDT to leaders of various scam centers in the region. This reveals a disturbing fact: many crypto scams are backed by highly organized transnational crime networks that set up scam factories in Southeast Asia, employing large numbers of people to carry out fraud.

The Tragic Lessons for 174 Victims

The U.S. government reports that 174 victims have been identified, though this only includes those who reported to law enforcement; the actual number of victims may be higher. Behind each victim is a shattered financial dream—some invested their life savings, others borrowed money—ultimately losing everything.

Part of the scam’s success lies in exploiting human vulnerabilities. Online dating scams (commonly called “pig butchering”) are particularly cunning because they combine emotional manipulation with financial fraud. Victims not only lose money but also suffer emotional trauma. Many feel ashamed after realizing they’ve been duped, delaying reporting or remaining silent, which emboldens the criminals.

The fake trading platforms are also highly deceptive. Modern technology makes it easy to create counterfeit websites; criminals can replicate interfaces of well-known exchanges or register similar domain names. Ordinary investors find it difficult to distinguish genuine from fake, especially when emotional factors cloud judgment. These fake platforms display “investments” that appear to grow, creating a false sense of profit and encouraging further deposits.

U.S. Assistant Attorney Bill Esali warned in a statement: “New investment opportunities may sound tempting, but they also have a dark side: they attract criminals who steal and launder millions of dollars from victims.” This highlights the double-edged nature of the cryptocurrency market. While blockchain technology offers innovative financial possibilities, its anonymity and regulatory gray areas also provide fertile ground for crime.

Legal Sanctions and Prevention Recommendations

U.S. District Judge R. Gary Klausner sentenced Jingliang Su to nearly 4 years in federal prison and ordered over $26,000,000 in restitution. This amount covers about 70% of the total laundered funds, indicating the court’s effort to compensate victims. However, whether victims can recover these funds remains uncertain, as criminal proceeds may have already been transferred or spent.

Prosecutors state that Su pleaded guilty in June this year to “conspiring to operate an illegal transmission business.” This plea deal suggests he cooperated with authorities for a lighter sentence. Eight other individuals have also pleaded guilty, including 39-year-old He Shengsheng from La Puente, California, who was sentenced to over four years in prison. This pattern of multiple guilty pleas indicates law enforcement is gradually dismantling the entire network.

However, sentencing eight members does not mean the scam is over. Transnational crime networks often have layered structures; those arrested are usually mid-level operatives, while the masterminds behind the scenes may remain at large. The Cambodian scam center leaders are likely to continue operations, seeking new laundering channels and frontline personnel.

How to Identify Cryptocurrency Scams

· Be cautious of investment opportunities that contact you proactively, especially from online dating contacts

· Verify the authenticity of trading platforms by checking domain names, regulatory licenses, and user reviews

· Reject promises of “guaranteed high returns”; all investments carry risks

· Do not invest large sums on unverified platforms

· Report suspicious activity to law enforcement immediately

This case serves as a warning to crypto investors. As digital asset markets grow, scam techniques continue to evolve. Investors must stay vigilant, conduct thorough due diligence, and remain skeptical of overly enticing opportunities. Meanwhile, regulators and law enforcement agencies need to strengthen international cooperation to combat transnational crypto crimes and protect investors’ rights.