California Man Sentenced to 51 Months After Laundering Nearly $37 Million Through Global Crypto Network

California Man Jailed For Laundering Millions In Global Crypto Scam

A California resident has been sentenced to more than four years in federal prison after admitting to helping launder tens of millions of dollars stolen from American investors in a sprawling cryptocurrency fraud.

How Axis Digital Became A Laundering Hub

Shengsheng He, 34, from La Puente, co-owned Axis Digital Limited, a shell company registered in the Bahamas.

Prosecutors said the firm acted as a conduit for victim funds, which were first deposited into an account at Deltec Bank before being converted into Tether (USDT).

From there, the stablecoins were funnelled into wallets operated by international scammers.

Investigators revealed that the money trail was deliberately concealed through shell entities and overseas transfers, making it harder to trace back to the original victims.

Pig Butchering Centres Driving The Fraud

The operation was linked to so-called “pig butchering” centres based in Cambodia, where organised groups lure victims through unsolicited messages, phone calls, or dating app conversations.

Victims were persuaded that they were investing in digital assets, only to later discover that their deposits had been siphoned off.

According to blockchain analytics firm Chainalysis, scams of this nature generated more than $9 billion in 2024 alone.

Sentence And Restitution Ordered

He pleaded guilty in April to conspiracy to operate an unlicensed money transmitting business.

On 8 September 2025, he was sentenced to 51 months in prison and ordered to pay $26.9 million in restitution.

Federal prosecutors said He played a central role in converting nearly $37 million in stolen funds and moving them through Axis Digital’s accounts.

Wider Crackdown On Crypto-Linked Fraud

The U.S. Department of Justice has increasingly focused on international cryptocurrency scams.

In recent months, authorities seized $201,000 in digital assets tied to Hamas, began returning $7.1 million to victims of a $97 million oil and gas fraud, and dismantled domains linked to Russian exchanges accused of processing $800 million in illicit transactions.

Co-Conspirators Also Facing Justice

Eight other individuals tied to Axis Digital have already admitted guilt, including business partners Jose Somarriba and Chinese national Jingliang Su, who helped convert and transfer the stolen assets.

The Justice Department explained,

“The co-conspirators then promoted fraudulent digital asset investments to the victims.”

The department noted that false claims of profits were used to trap investors until their funds were drained.