09.09.2025 06:14
Here is a revised version of the news article, incorporating different sentence structures and enhanced language:
A California resident has received a sentence of 51 months in federal prison, in addition to being ordered to pay $26.9 million in restitution, for his involvement in laundering almost $37 million siphoned from U.S. investors via a sprawling cryptocurrency scam, according to federal prosecutors. Shengsheng He, of La Puente, California, had previously admitted guilt in April to conspiring to run an unlicensed money transmitting enterprise.
As detailed by the Justice Department, He held co-ownership of Axis Digital Limited, a firm based in the Bahamas that served as a conduit for receiving and transferring the ill-gotten gains from the victims. The deceptive operation hinged on unsolicited communications—ranging from messages and phone calls to interactions on dating apps—aimed at cultivating trust with potential targets.
The DOJ explained that the perpetrators would subsequently entice victims with fictitious digital asset investments, falsely asserting the appreciation of their investments. In reality, the funds provided by the victims were outright stolen. Once the money was transferred, it was channeled into a central Axis Digital account at Deltec Bank in the Bahamas, after which it was converted into the Tether (USDT) stablecoin and transferred to digital wallets under the scammers' control.
Law enforcement officials reported that the funds were deliberately routed through shell companies and offshore accounts as a means of concealing their original source. According to prosecutors, the fraudulent operation originated from "pig butchering" centers located in Cambodia, where criminals employ social engineering techniques to defraud individuals. Internet sources indicate that pig butchering scams, recognized as high-volume digital fraud schemes, generated an estimated $9 billion in 2024 alone, according to Chainalysis. Unaware of the deception, victims believed they were legitimately investing in digital assets, while their money was being laundered through a complex network of accounts across multiple jurisdictions. This case is part of an ongoing effort by the DOJ to clamp down on crypto fraud.
