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Chinese mining executive allegedly defrauded in Ohio crypto scheme as court jails Al Zubair brothers

Chinese mining executive allegedly defrauded in Ohio crypto scheme as court jails Al Zubair brothers

Caixin identified the victim as Valarhash founder and CEO Fiona Lyu, while Ohio court records show Zubair Al Zubair and Muzammil Al Zubair received 24- and 23-year sentences and roughly $21.2 million in restitution.

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Fact Check
The DOJ official press release confirms the Al Zubair brothers received 24- and 23-year sentences for a cryptocurrency-mining and royalty-impersonation fraud, with restitution totaling roughly $21.2M ($19.2M joint plus IRS amounts). Caixin reporting and the Odaily/Foresight News follow-up explicitly identify the victim as Valarhash founder/CEO Fiona Lyu (吕咏双), whose mining pools peaked at ~9% of global Bitcoin hashrate. All core claim elements—victim identity, the brothers, the sentences, and the restitution figure—are corroborated across official and primary sources. Minor numeric nuance: the direct loss to Lyu is reported around $9.4–18M, while $21.2M is the total court-ordered restitution across all victims, consistent with the claim's framing.
Summary

Caixin reported that Valarhash founder and CEO Fiona Lyu was the Chinese crypto executive previously described only as CEO Lü and said she lost more than $9.4 million, or about 60 million yuan, in a fake Ohio crypto mining project. In the related U.S. case, an Ohio court sentenced Zubair Al Zubair, 42, to 24 years and Muzammil Al Zubair, 31, to 23 years, with prosecutors saying they posed as Middle Eastern royals and hedge fund managers to solicit "government cooperation + crypto mining investment." Court records cited in the newer report said the case carried about $21.2 million in restitution and involved nearly $18 million in losses from one Chinese crypto investor; Caixin also said former East Cleveland official Michael Smedley was sentenced in May 2026. Lyu's 1THash and Bytepool once held about 9% of global Bitcoin hash rate, and she separately lost a lawsuit in China over a 19.2965 million yuan mining-contract refund dispute.

Terms & Concepts
  • Bitcoin hash rate: The total computing power securing the Bitcoin network.
  • restitution: Court-ordered repayment to victims for losses.
  • crypto mining farm: A facility running machines to mine cryptocurrencies.