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46-month sentence for a major USDT laundering scheme
A U.S. federal court has sentenced Chinese national Jingliang Su to 46 months in prison after he admitted participating in a cross-border crypto money-laundering operation that moved more than $36.9 million. Prosecutors say the funds were routed through a Bahamian Deltec Bank account, converted into Tether (USDT), and forwarded to wallets linked to scam operations in Cambodia. Su pleaded guilty in June 2025 to conspiracy to operate an illegal money-transmitting business and was ordered to pay over $26 million in restitution.
How the pig-butchering scheme worked
Authorities describe the fraud as a classic "pig butchering" operation adapted for crypto: fraudsters cultivated trust over weeks or months through social media, unsolicited texts, dating apps and phone calls, then pushed victims into sham high-yield crypto platforms. Those fake platforms displayed fabricated account gains to encourage larger deposits while covertly siphoning funds into offshore bank accounts.
Role of USDT, Deltec Bank and cross-border transfers
Prosecutors allege the network funneled more than $36.9 million from U.S. bank accounts into a single Deltec Bank account in the Bahamas before converting the proceeds into USDT. Once converted, the stablecoins were transmitted to wallets controlled by co-conspirators in Cambodia, where the funds were dispersed across regional scam networks. The use of Tether highlighted how stablecoins can be misused in layering and movement of illicit proceeds.
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Victim impact and scope
The Department of Justice says 174 U.S. victims lost money in this scheme. Fraudsters targeted users with promises of unusually high returns, then used sophisticated social engineering and fake trading interfaces to conceal theft. First Assistant U.S. Attorney Bill Essayli warned that polished digital investment pitches can mask large-scale criminal operations that steal and launder victims' assets.
Co-defendants and related sentences
Su is one of nine defendants tied to the case. Eight co-defendants have pleaded guilty; among them, Jose Somarriba received a 36-month sentence and ShengSheng He received 51 months. Law enforcement has increased focus on dismantling organized crypto fraud rings, particularly those employing pig butchering tactics, romance scams and fake investment programs.
Regulatory and industry context
This prosecution signals an intensifying crackdown by U.S. authorities on crypto-enabled money laundering. Chainalysis and other blockchain analytics firms have repeatedly identified high-yield investment programs and pig-butchering as dominant scam types. In 2025 alone, crypto fraud and theft were reported to have caused more than $17 billion in losses globally, according to industry data.
Related investigations
Law enforcement is pursuing multiple related matters, including charges against individuals accused of running forced-labor pig-butchering operations in Southeast Asia. These cases underscore how fraud, money laundering and human trafficking can intersect when organized groups use crypto rails to move and obscure stolen funds.
Market snapshot and implications for traders
The ruling comes amid continued market activity: Bitcoin was trading near $89,127.74 over the last 24 hours with about $38.64 billion in volume, while Ethereum hovered around $3,008.32, up roughly 2.5% day-over-day with daily volume above $29.3 billion. Tether maintained its $1.00 peg with market capitalization north of $186 billion. For traders and investors, the case is a reminder to verify platforms, exercise due diligence on counterparties, and rely on regulated exchanges and transparent custody solutions to reduce exposure to fraud and money laundering.
Takeaway: vigilance in a maturing crypto ecosystem
The sentencing of Jingliang Su highlights the persistent threat posed by organized crypto scams and the evolving enforcement response. As scammers adapt, the industry, exchanges, regulators and users must prioritize stronger KYC/AML controls, public awareness, and cross-border coordination to curb illicit flows on blockchain networks.
Source: crypto
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