Dutch police extradite Chinese national accused of laundering Cambodian investment scam funds

A Chinese national was extradited from The Netherlands and arraigned on Friday after prosecutors accused him of facilitating an investment fraud scheme through scam centers in Cambodia. 

44-year-old Zheng Zhao was allegedly a key money-launderer working with a group of scammers who called U.S.-based victims and urged them to invest in fictitious businesses. 

Zhao is the ninth person to be charged as part of the scheme after eight others pleaded guilty to money laundering charges. 

Court documents said Zhao helped facilitate the transfer of stolen funds to a bank account at Deltec Bank in the Bahamas. Zhao converted the funds into cryptocurrency stablecoin USDT, which allowed it to be transferred to digital wallets controlled by people in Cambodia. The funds were then spread to the leaders of scam centers throughout Southeast Asia. 

Zhao was charged in August 2025 and is facing up to 20 years in prison if convicted on one count of conspiracy to commit money laundering. Zhao appeared in a California district court on Friday.

U.S. investigators have identified at least 174 American victims of the scheme, which saw scammers contact people on social media or through phone calls, texts and dating sites. The scammers convinced victims to invest in fake digital asset services and used fictitious screenshots alleging their investments were growing. 

In total, the group transferred at least $36.9 million in victim funds to the Deltec Bank account.

ShengSheng He and Jingliang Su – two other coconspirators previously charged alongside Zhao — pleaded guilty and were sentenced last year to 51 months and 46 months in prison respectively. 

Prosecutors said most of the funds were transferred to scam center leaders based in the Cambodian coastal city of Sihanoukville — a well-known haven for Chinese criminal activity. 

Several of those who pleaded guilty traveled back and forth between the U.S. and Cambodia’s capital Phnom Penh, coordinating the transfer of stolen funds.