US Justice Department Cracks Down on $36.9M International Crypto Fraud Ring

Five individuals have admitted guilt in a sophisticated scheme that laundered over $36.9 million from victims of an international cryptocurrency investment scam. The U.S. Department of Justice revealed the operation involved a network of shell companies, offshore accounts, and digital wallets to siphon funds from defrauded investors.

The defendants—including three California residents and two Chinese nationals—orchestrated their fraud through unsolicited social media outreach, text messages, and dating platforms. Victims were persuaded to transfer money under the false pretense of investing in appreciating digital assets, only to have their funds diverted to accounts controlled by the perpetrators.

Key to the scheme was a Deltec Bank account in the Bahamas, registered under Axis Digital Limited. Two of the conspirators co-founded the entity, while a third later joined as director. The case underscores the growing regulatory scrutiny on cross-border crypto fraud.