A California man has been sentenced to 51 months in federal prison after being found guilty of laundering over $36.9 million in a sophisticated global digital asset fraud scheme. Shengsheng He, a 39-year-old resident of La Puente, was also ordered to pay restitution of almost $27 million to the victims of his fraudulent activities.
He admitted to conspiring to operate an unlicensed money transmitting enterprise, which operated primarily from Cambodia. The operation targeted unsuspecting U.S. residents through elaborate, fake investment schemes.
The Mode of Operation
He and his partner, Jose Somarriba, co-founded Axis Digital Limited, a shell company based in the Bahamas, to facilitate their fraudulent operation. The duo, along with their associates, employed various tactics to lure American victims. They contacted people through unsolicited messages on social media, phone calls, text messages, and even dating apps.
Part of their gimmick included crafting convincing stories to build trust and persuade potential victims that their investments were safe and earning good returns. Victims were misled into thinking their money was growing.
However, over time, more than $36.9 million was later transferred to an account at Deltec Bank in the Bahamas. The funds were then converted into Tether (USDT) and swiftly moved to digital wallets located in Cambodia.
Law Enforcement Cracks Down on Pig Butchering Scams
He and others, including Daren Li, a Chinese national who has been in U.S. custody since April 2024 and have pleaded guilty to the charges. Lu Zhang, another Chinese national, also admitted to running a money laundering network in the United States. Two others, Jose Somarriba and Jingliang Su, faced similar charges.
Meanwhile, He was sentenced to 51 months in federal prison and ordered to pay restitution of almost $27 million. The scam is part of a disturbing rise in “pig butchering” scams resulting in multi-billion dollar losses.
Following He’s sentencing, Acting U.S. Attorney Bill Essayli for the Central District of California said,
“This defendant will spend years in federal prison for participating in a conspiracy in which victims lost tens of millions of dollars, starting with the simple step of responding to unsolicited messages on their phones.”
Meanwhile, investigations are ongoing as attempts are made to hold more people accountable for their involvement in this massive fraud. The authorities have noted that centers in Cambodia, particularly the city of Sihanoukville, are hotspots for such schemes. These spots provide a physical base for these criminals.
Jonathan Agozie | July 22, 2026
