A federal court sentenced Jingliang Su, a Chinese citizen, to nearly four years in prison after being found guilty of participating in cryptocurrency money laundering. According to judicial reports issued this January 28, 2026, the criminal network defrauded more than 170 American victims through sophisticated digital investment schemes.
The criminal group used social engineering tactics to contact users via social media, dating apps, and unsolicited messages, successfully establishing trust bonds. Once the investors’ interest was gained, they were redirected to fraudulent platforms that simulated real operations, allowing attackers to seize deposited assets immediately.
On the other hand, the financial infrastructure of this criminal organization allowed for the transfer of stolen funds from North American bank accounts to institutions in the Bahamas, specifically Deltec Bank. However, tracking conducted by authorities revealed that the capital was ultimately converted into the Tether cryptocurrency, facilitating its subsequent transfer to digital wallets under criminal control in Cambodia.
The sophisticated fraud route and federal intervention
During the judicial process, it was determined that the funds converted into digital assets served to finance and expand scam operations throughout the Southeast Asian region, consolidating a transnational network. Likewise, the use of methods known as pig butchering allowed perpetrators to extract tens of millions of dollars, exploiting the emotional vulnerability of their victims.
Despite attempts to hide the capital’s trail, cooperation among US law enforcement agencies facilitated Su’s arrest in December 2024, who finally admitted his guilt. This case represents a milestone in the fight against organized cybercrime, highlighting the technical capability of investigators to dismantle structures operating outside traditional regulatory frameworks.
What impact will this sentence have on the prevention of digital scams?
In addition to the prison sentence, District Judge R. Gary Klausner imposed a restitution order on the sentenced individual exceeding $26 million in compensation. It was also learned that eight other accomplices have received similar sentences, which reinforces the zero-tolerance message issued by the Department of Justice against those facilitating global financial crimes.
Ultimately, the Chainalysis annual report confirms that these types of high-yield investment programs continue to lead the volume of fraud within the technology sector during the current year. It is expected that tougher penalties and constant surveillance over USDT flows will help mitigate losses, which have already affected thousands of investors worldwide.
