A man from La Puente in the San Gabriel Valley was sentenced to 51 months in federal prison for his involvement in laundering more than $36.9 million as part of an international digital asset investment scam. The scheme, operated out of scam centers in Cambodia, targeted U.S. victims through unsolicited messages and fraudulent investment opportunities.
Shengsheng He, 39, received his sentence from United States District Judge R. Gary Klausner, who also ordered him to pay nearly $26.9 million in restitution. He pleaded guilty earlier this year to conspiracy to operate an illegal money transmitting business.
“This defendant will spend years in federal prison for participating in a conspiracy in which victims lost tens of millions of dollars, starting with the simple step of responding to unsolicited messages on their phones,” said Acting United States Attorney Bill Essayli. “The public should always remember to be vigilant and wary of strangers marketing promising investment opportunities. Your retirement fund or children’s college money may depend on it.”
“The defendant was part of a group of co-conspirators that preyed on American investors by promising them high returns on supposed digital asset investments when, in fact, they stole nearly $37 million from U.S. victims using Cambodian scam centers,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Foreign scam centers, purporting to offer investments in digital assets have, unfortunately, proliferated. The Criminal Division is committed to bringing to justice those that steal from American investors, wherever the fraudsters may be located.”
According to court records, He belonged to a global criminal network that convinced Americans to transfer funds into accounts managed by conspirators who then moved the money through shell companies and overseas bank accounts before converting it into cryptocurrency wallets.
The operation relied on reaching potential victims through social media platforms and online communication channels such as dating services and text messages. Victims were told their investments were growing while their funds were being diverted elsewhere. Over $36 million was moved from U.S.-controlled accounts into an account at Deltec Bank in the Bahamas under Axis Digital Limited's name; these funds were converted into Tether (USDT) stablecoin and transferred into wallets overseen by individuals based in Cambodia.
So far, eight people involved have pleaded guilty—including Daren Li and Lu Zhang—both foreign nationals charged with conspiracy-related offenses after managing networks that facilitated laundering operations within the United States.
He co-founded Axis Digital with Jose Somarriba; another Chinese national, Jingliang Su, later joined as director overseeing conversions and transfers related to victim funds. Both Somarriba and Su have also entered guilty pleas for roles tied to operating unlicensed money transmitting businesses.
The case investigation has been led by the United States Secret Service’s Global Investigative Operations Center with support from Homeland Security Investigations’ El Camino Real Financial Crimes Task Force and other federal agencies including Customs and Border Protection’s National Targeting Center and State Department’s Diplomatic Security Service.
Prosecution efforts are being coordinated by multiple attorneys across sections focused on terrorism export crimes, major frauds, computer crime intellectual property issues (CCIPS), and general fraud prosecution within the Justice Department.
CCIPS collaborates internationally on cybercrime investigations involving private sector partnerships; since 2020 it has achieved over 180 convictions connected with cybercriminal activity alongside recovery orders totaling over $350 million for affected victims.
Victims or those aware of similar scams are encouraged to report incidents at IC3.gov.
