• 2 min read
US charges pair over $43M scam laundering ring
Federal prosecutors say two New York defendants helped launder at least $43 million from cyber investment scams through 140 bank accounts.
Image: BleepingComputer
U.S. prosecutors have charged Zhuoying Chen, 27, and Haojie Zhang, 38, over their alleged roles in a money-laundering operation tied to cyber investment fraud scams. According to an unsealed indictment, the two allegedly ran a network of more than a dozen people in Queens and Brooklyn between 2020 and 2022.
Prosecutors say the group moved at least $43 million in scam proceeds to bank accounts in China, using 140 bank accounts linked to roughly 45 shell companies.
The underlying fraud followed a familiar pattern: scammers contacted targets on social media or messaging services, built trust, and pushed them into fake investment opportunities. Victims were shown fabricated profiles displaying profits, prompting them to invest more before the additional funds were stolen.
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“For nearly two years, these two Chinese nationals allegedly ran a sophisticated, illicit network that laundered funds stolen from unsuspecting victims' life savings.”
“As alleged in the indictment, the defendants laundered fraud proceeds, enabling scammers to continue to victimize Americans and deprive them of their hard earned money.”
If convicted of conspiracy to commit money laundering, Chen and Zhang each face up to 20 years in prison.
The charges land amid a wider surge in investment fraud. The FBI’s 2025 Internet Crime Report said investment fraud made up 49% of all scam-related incidents last year, with reported losses reaching $8.6 billion, up from $6.5 billion in 2024.
Federal authorities have brought several related cases in recent months. In February, Daren Li, 42, a fugitive tied to a $73 million international cryptocurrency investment scheme known as pig butchering or romance baiting, was sentenced in absentia to 20 years in prison. He was the first defendant directly involved in receiving victim funds to be sentenced among eight other accomplices who also pleaded guilty in the same case.
The Justice Department also charged four additional suspects in December in another pig-butchering case tied to more than $80 million in losses. In November, U.S. authorities created the Scam Center Strike Force, a task force aimed at disrupting crypto-scam networks, after the Justice Department seized $15 billion from the leader of Prince Group.
Since the start of the year, European authorities have also dismantled two investment fraud rings blamed for estimated losses of more than €150 million worldwide.
Security Editor
Sophia unpacks the invisible wars happening on our networks. Covering cybersecurity, privacy legislation, and cryptography, she exposes how our data is weaponized and defended. Before joining for(geeks), she spent years as a penetration tester. She's the reason the rest of the team uses physical security keys.
via BleepingComputer
