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California Man Sentenced to 51 Months for $37 Million Crypto Laundering Scheme

Shengsheng He was sentenced for laundering nearly $37 million through Tether and fraud wallets, part of an international crypto scam network.

USDT

Summary

Shengsheng He, 39, of La Puente, California, was sentenced to 51 months in prison for his role in laundering nearly $37 million from U.S. victims in a global crypto fraud scheme. He co-owned Axis Digital Limited, which moved victim funds through a Bahamas account, converting them into Tether (USDT) before transferring them to Cambodia-controlled wallets. He must repay $26.8 million in restitution. Several co-conspirators, including Jose Somarriba and Jingliang Su, have pleaded guilty. The case is part of a broader DOJ crackdown on international crypto scams.

Terms & Concepts
  • Tether (USDT): A U.S. dollar-pegged stablecoin commonly used for transferring funds across crypto exchanges and platforms.
  • Pig Butchering Scam: A social engineering fraud where scammers build trust with victims over time before tricking them into fraudulent crypto investments.
  • Unlicensed Money Transmitting Business: An illegal operation involving the transfer of funds without proper authorization or licensing, often used to launder illicit proceeds.