Overview

• U.S. District Judge R. Gary Klausner ordered Shengsheng He to pay $26,867,242 in restitution after his sentencing in Los Angeles.
• He pleaded guilty on April 10 to conspiracy to operate an unlicensed money transmitting business and previously co-owned Bahamas-based Axis Digital Limited.
• More than $36.9 million flowed from U.S. accounts to an Axis Digital account at Deltec Bank in the Bahamas, was converted to Tether (USDT), and was sent to wallets controlled in Cambodia, including Sihanoukville scam centers.
• Eight co-conspirators have pleaded guilty so far, including Daren Li, Lu Zhang, Jose Somarriba, and Jingliang Su, who helped direct laundering and crypto conversions.
• The investigation is led by the U.S. Secret Service with support from HSI, CBP’s National Targeting Center, the State Department’s Diplomatic Security Service, Dominican National Police, and the U.S. Marshals Service as part of a broader DOJ push against crypto-enabled fraud.