Involved in a $34 Million Crypto Scam, Chinese Citizen in the US Sentenced to 4 Years in Prison

A Chinese national has been sentenced to nearly four years in US federal prison after being convicted for his role in a large-scale cryptocurrency scam that targeted American victims. 

The case highlights how international crypto fraud rings exploit digital assets, social media, and cross-border banking to move stolen funds, while also showing that US authorities are becoming more aggressive in pursuing offenders operating within or through the United States.

Key Takeaways

• Jingliang Su received a 46-month prison sentence for laundering more than $36 million from crypto scams targeting Americans.
• The scam involved fake investment schemes that ultimately converted stolen funds into USDT stablecoins.
• US authorities view crypto-enabled fraud as a growing national threat, with global coordination now a key enforcement focus.

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Who Is Jingliang Su and What Happened

Jingliang Su, a Chinese citizen residing in the United States, was sentenced to 46 months in federal prison for conspiracy to operate an illegal money transmitting business. 

According to the US Department of Justice, Su played a central role in laundering approximately $36.9 million stolen from victims of cryptocurrency investment scams.

The sentencing took place in the Central District of California, following Su’s guilty plea. In addition to prison time, the court ordered Su to pay over $26.8 million in restitution to victims. Prosecutors stated that at least 174 Americans were directly affected by the scheme.

Authorities described Su as a key financial facilitator rather than the public face of the scam. His primary role involved managing bank accounts, shell companies, and crypto wallets used to move and disguise stolen funds.

Read Also: AI-Generated Crypto Scams Explained

How the Crypto Scam Targeted American Victims

The scam followed a now-familiar pattern seen in many large crypto fraud cases. Victims were approached online through social media platforms, messaging apps, or fake investment websites. 

Scammers promised high returns from crypto-related investments, often presenting fabricated dashboards showing growing profits.

Once trust was established, victims were instructed to transfer funds to accounts controlled by Su and his co-conspirators. These transfers typically began as wire payments or bank deposits, giving the operation an appearance of legitimacy.

After funds were received, victims were told their investments were performing well. In reality, the money had already been stolen and was being prepared for laundering through cryptocurrency.

Role of USDT and Crypto Laundering Mechanics

According to court filings, the stolen funds were eventually converted into Tether’s dollar-backed stablecoin, USDT. Stablecoins are frequently used in crypto laundering schemes because they offer fast settlement, high liquidity, and relative price stability.

The process involved routing funds through shell companies, domestic bank accounts, and international financial institutions before conversion to cryptocurrency. Once converted, the funds could be rapidly moved across borders, complicating recovery efforts.

US prosecutors emphasized that this hybrid method, combining traditional banking with crypto rails, is increasingly common in modern financial crime.

Statements From US Authorities

Assistant Attorney General A. Tysen Duva from the Justice Department’s Criminal Division described the case as a clear example of how criminals exploit digital infrastructure.

He stated that in the digital age, fraudsters weaponize phones, social media platforms, and fake websites to steal money, then rely on cryptocurrency and international wire transfers to move proceeds outside the United States.

First Assistant US Attorney Bill Essayli added that while new investment opportunities may appear attractive, they often draw criminals seeking to exploit inexperienced investors. He stressed that crypto scams are not victimless crimes and frequently cause life-altering financial damage.

Co-Conspirators and Broader Criminal Network

Su was not the only individual prosecuted in connection with the scheme. One co-conspirator, Shengsheng He, a California resident, was sentenced to 51 months in prison in September. Authorities confirmed that at least eight individuals involved in the operation have pleaded guilty so far.

The Justice Department described the network as an organized laundering operation rather than a loose group of scammers. Each participant played a specific role, including victim recruitment, account management, and crypto conversion.

Read Also: Crypto Fraud Worth Over $530000 in Vietnam

Rising Scale of Crypto Scams in the United States

The case comes amid a sharp rise in crypto-related fraud. Blockchain analytics firm Chainalysis estimates that losses from crypto scams exceeded $17 billion last year. This represents one of the largest annual totals on record.

Chainalysis also noted a significant increase in impersonation scams, driven in part by artificial intelligence. The report cited a 1,400% surge in impersonation-related fraud, with scammers using AI-generated voices, images, and messaging scripts to deceive victims.

These trends have raised alarms among regulators and law enforcement agencies, who increasingly view crypto fraud as a national and international security issue rather than a niche financial crime.

What This Case Means for Crypto Regulation

While the case against Jingliang Su does not directly target a crypto protocol or blockchain, it reinforces the regulatory focus on intermediaries. Authorities are particularly interested in individuals and entities that act as bridges between traditional finance and crypto systems.

Expect increased scrutiny on money service businesses, OTC brokers, stablecoin on-ramps, and individuals managing large volumes of crypto transactions for third parties. Regulators are also likely to push for stronger compliance obligations around identity verification and transaction monitoring.

This case also signals that residency in the United States exposes foreign nationals to full US criminal jurisdiction, even if the victims or co-conspirators are located elsewhere.

Final Thoughts

The sentencing of Jingliang Su underscores a broader shift in how US authorities approach crypto crime. Rather than viewing scams as anonymous, unsolvable blockchain events, prosecutors are increasingly targeting the human infrastructure behind them.

By focusing on money laundering facilitators and financial coordinators, law enforcement can disrupt entire networks rather than chasing individual scammers. 

For crypto users, the case serves as another reminder that promises of guaranteed returns are a major red flag, regardless of how sophisticated the presentation appears.

As crypto adoption continues to grow, cases like this suggest enforcement actions will grow alongside it, with cross-border cooperation becoming the norm rather than the exception.

Read Also: AI Powers $14 Billion Crypto Fraud Industry Over Last Year

FAQs

Who is Jingliang Su

Jingliang Su is a Chinese citizen who was sentenced in the United States for laundering tens of millions of dollars from crypto scams that targeted American victims.

How long was Jingliang Su sentenced to prison

He received a 46-month prison sentence, which is just under four years, along with an order to pay more than $26.8 million in restitution.

How did the crypto scam work

Victims were tricked into sending money for fake crypto investments, after which the funds were laundered through bank accounts, shell companies, and converted into USDT stablecoins.

Why is USDT often used in crypto scams

USDT is widely used because it maintains a stable value, has deep liquidity, and allows fast cross-border transfers, making it attractive for laundering stolen funds.

Are crypto scams increasing in the US

Yes, estimates suggest crypto scam losses exceeded $17 billion last year, with a sharp rise in AI-assisted impersonation fraud.

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