Global Law Enforcement Collaboration Targets Crypto Scams

Los Angeles, June 10, 2025— The U.S. Attorney’s Office for the Central District of California announced on June 9, 2025, that Joseph Wong, Yicheng Zhang, Jose Somarriba, Shengsheng He, and Jingliang Su pleaded guilty to laundering $36.9 million in a crypto scam targeting Americans. The U.S. Secret Service, Homeland Security Investigations, and Cambodian authorities disrupted the operation, which funneled funds through shell companies and converted them into Tether (USDT) before transferring them to Cambodia-based wallets.

The Dominican National Police and the U.S. Marshals Service also provided critical support, leading to the arrests of key figures like Daren Li in April 2024 at Hartsfield-Jackson Atlanta International Airport. “This case demonstrates the power of global cooperation in tackling transnational crypto crime,” said Acting Assistant Director Michael Ball of the U.S. Secret Service. The operation’s success underscores the growing importance of international partnerships in addressing sophisticated financial fraud.

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Targeting Cambodia’s Scam Hubs and Lazarus Group Links

The scam’s funds were traced to Sihanoukville, Cambodia, a known hub for crypto fraud operations, some of which are linked to North Korea’s Lazarus Group, according to a 2025 U.S. Treasury Department report. The U.S. Financial Crimes Enforcement Network (FinCEN) proposed sanctions on May 1, 2025, to cut off Cambodia’s Huione Group from the U.S. banking system, citing its role in facilitating money laundering for groups like Lazarus.

Blockchain analytics firm TRM Labs identified transactional links between Huione Guarantee and other entities like Xinbi, revealing attempts to bypass enforcement actions. Cambodian authorities, under pressure from international partners, have intensified raids on scam compounds, with over 1,000 human trafficking victims freed from similar operations in the region in early 2025, as reported by Deutsche Welle. These efforts reflect a broader global push to dismantle crypto scam infrastructures.

Did you know?
Over $100 billion in cryptocurrency moved through illicit wallets to conversion services between 2019 and mid-2024, with Tether (USDT) accounting for 84% of pig butchering scam transaction volume, according to a 2025 Chainalysis report.

Strengthening Global Blockchain Forensics

The success of this case highlights the critical role of blockchain forensics in tracking illicit crypto transactions across borders. Agencies like the U.S. Secret Service collaborated with firms such as Chainalysis and Elliptic to trace the flow of Tether (USDT) from U.S. victims to Cambodian wallets, leveraging advanced analytics to map the scam’s financial trails.

In 2025, international law enforcement has increasingly adopted blockchain tracing tools, with Interpol launching a Crypto Crime Task Force in January to enhance global coordination. “Blockchain’s transparency is a double-edged sword—it enables scams but also empowers us to catch them,” said Sarah Lin, a Chainalysis analyst.

The task force has trained over 500 officers worldwide in 2025, boosting capabilities to combat crypto-related crimes like pig butchering scams.

Enhancing International Regulatory Frameworks

The guilty pleas in this $36.9 million scam case have spurred calls for stronger global regulatory frameworks to prevent crypto fraud. The U.S. Treasury’s proposed sanctions on Huione Group are part of a broader 2025 initiative to align anti-money laundering (AML) standards across jurisdictions, with the Financial Action Task Force (FATF) updating its crypto guidelines in April.

Cambodia’s government, responding to international pressure, passed new AML laws in March 2025 to regulate crypto exchanges, while the Dominican Republic has tightened oversight of offshore banking linked to crypto scams. These regulatory advancements aim to close loopholes exploited by scammers, ensuring that international cooperation extends beyond enforcement to policy alignment.