California Man Sentenced in $37M Crypto Scam Amid Ongoing DOJ Crackdown

Group 1 - Shengsheng He was sentenced to 51 months in federal prison and ordered to pay $26.9 million in restitution for laundering nearly $37 million stolen from U.S. investors through a cryptocurrency scam [1] - He co-owned Axis Digital Limited, a Bahamas-based company that facilitated the transfer of victim funds through unsolicited messages and social engineering tactics [2] - The scam involved promoting fraudulent digital asset investments, misleading victims into believing their investments were appreciating while the funds were actually stolen [2] Group 2 - The funds were funneled through shell companies and overseas accounts to obscure their origin, with operations linked to Cambodian "pig butchering" centers [3][4] - In 2024, pig butchering scams generated $9 billion, highlighting the scale of digital fraud in the cryptocurrency space [4] - The Justice Department has intensified its crackdown on crypto-related fraud, seizing digital assets linked to various illicit activities and returning millions to victims [4][5] Group 3 - Eight co-conspirators, including business partners of He, have pleaded guilty in the Axis Digital case, indicating a broader network involved in the scam [5] - The DOJ has taken action against Russian-run exchanges accused of processing over $800 million in illicit transactions, showcasing the international dimension of cryptocurrency fraud [5]