A U.S. federal court has sentenced Jingliang Su, a 45-year-old Chinese national, to 46 months in prison for his role in laundering tens of millions of dollars stolen from victims of cryptocurrency investment scams.
The sentence follows a guilty plea tied to a sophisticated international fraud operation that targeted American victims through so-called “pig butchering” schemes.
U.S. District Judge R. Gary Klausner also ordered Su to pay more than $26.8 million in restitution, reflecting the scale of financial harm caused by the operation.
Conviction and scope of the scheme
Su pleaded guilty to one count of conspiracy to operate an illegal money transmitting business, acknowledging his role in moving illicit funds generated by crypto investment fraud. Prosecutors said the network laundered approximately $37 million, stolen from at least 174 identified victims in the United States.
The scheme relied on long-term social engineering tactics. Victims were approached through dating applications, social media platforms, and unsolicited text messages, gradually building trust before being introduced to what appeared to be legitimate cryptocurrency investment opportunities.
In reality, the platforms were entirely fraudulent.
How the laundering operation worked
According to court filings, victims were directed to fake cryptocurrency trading websites designed to closely resemble real exchanges. These platforms displayed fabricated account balances and fictitious profits, encouraging victims to deposit increasing amounts of money.
Once funds were sent, the laundering process unfolded in several stages. Money was first routed through U.S.-based shell companies, masking its criminal origin. From there, the funds were transferred to an account at Deltec Bank in the Bahamas, held under the corporate name Axis Digital Limited.
The final stage involved converting the stolen funds into Tether (USDT), after which the assets were sent to wallets controlled by scam centers operating in Cambodia, effectively removing them from the U.S. financial system and placing them under the control of overseas criminal groups.
Part of a broader enforcement effort
Su is not the only participant in the operation to face sentencing. He is one of eight co-conspirators who have pleaded guilty in connection with this specific network. In September 2025, Shengsheng He, a California resident involved in the same scheme, was sentenced to 51 months in prison.
Other figures, including Daren Li and Lu Zhang, played key roles in coordinating the domestic and international laundering infrastructure. Li is scheduled to be sentenced later in 2026, as federal prosecutors continue to dismantle the network.
Regulatory and enforcement implications
The case highlights the growing focus of U.S. authorities on the financial plumbing behind crypto-related fraud, rather than solely on the front-end scams. By targeting money transmitters, shell companies, and stablecoin conversion pathways, prosecutors are aiming to disrupt the mechanisms that allow large-scale fraud to operate across borders.
As pig-butchering scams continue to evolve and increasingly rely on digital assets, the sentencing underscores a broader enforcement message: laundering crypto proceeds through international banking and stablecoin rails carries consequences comparable to traditional financial crimes, including lengthy prison terms and substantial restitution orders.
