Axis Digital money laundering led to a 51-month federal sentence for Shengsheng He; he must pay $26.9 million restitution after co‑running a global crypto fraud that converted stolen funds into USDT and routed them through shell companies and offshore accounts.
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Sentencing and restitution
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Victims were targeted via unsolicited messages and dating apps and funneled funds into Axis Digital accounts converted to Tether (USDT).
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Chainalysis estimates pig butchering scams netted $9 billion in 2024; DOJ prosecuted multiple co‑conspirators in the Axis Digital case.
Axis Digital money laundering: California man sentenced to 51 months and ordered to pay $26.9M restitution — learn how the pig butchering scam worked and what victims can do next.
What is Axis Digital money laundering and what happened in the sentencing?
Axis Digital money laundering refers to a Bahamas‑based laundering network used to move stolen investor funds into Tether (USDT) and offshore accounts. Shengsheng He pleaded guilty to operating an unlicensed money transmitting business and was sentenced to 51 months with $26.9 million restitution.
How did scammers recruit and deceive victims?
The operation used unsolicited messages, phone calls and dating apps to build trust and introduce fake crypto investments. Victims were told their investments were appreciating while funds were diverted. Funds were collected into an Axis Digital account at Deltec Bank and converted to USDT.
Why are pig butchering scams so effective?
Pig butchering scams rely on social engineering and long‑term grooming to gain victims’ trust. The axis of success is repeated contact, fabricated trading interfaces, and rapid conversion of funds to stablecoins like USDT to obscure origins.
What do prosecutors say about the Axis Digital network?
Federal prosecutors describe Axis Digital as a conduit that received victim funds, converted them to Tether, and routed proceeds through shell companies and overseas accounts. Eight co‑conspirators have pleaded guilty, and partners like Jose Somarriba and Jingliang Su were identified in court filings.
Frequently Asked Questions
How much was stolen and laundered through Axis Digital?
Authorities say nearly $37 million stolen from U.S. investors flowed through Axis Digital, with Shengsheng He ordered to pay $26.9 million in restitution after pleading guilty to conspiracy to operate an unlicensed money transmitting business.
How can victims report or recover funds?
Victims should contact federal law enforcement and retain records of communications and transfers. Recovery is case‑specific; DOJ asset seizures and civil remedies have returned funds in recent prosecutions. Mentioned agencies: U.S. Department of Justice and Chainalysis (plain text).
How did law enforcement trace the flow of funds?
Investigators tracked transfers into Axis Digital’s Deltec Bank account in the Bahamas, conversion to USDT, and onward transfers to wallets tied to co‑conspirators. Chain analysis and cooperation with offshore jurisdictions supported the case.
How does this fit into wider DOJ crypto enforcement?
The case is part of a broader DOJ crackdown on crypto fraud and laundering. Recent actions include seizures of cryptocurrency tied to terrorist financing, asset recoveries for investment fraud victims, and disruption of offshore venues facilitating illicit flows.
Key Takeaways
- Conviction and penalty: Shengsheng He sentenced to 51 months and $26.9M restitution.
- Modus operandi: Unsolicited messages and dating apps used to recruit victims; funds converted to USDT and routed offshore.
- Wider trend: Pig butchering scams are a major global fraud vector; Chainalysis reported $9 billion in gains in 2024.
Conclusion
This Axis Digital money laundering prosecution highlights how pig butchering scams convert trusted communications into large‑scale theft. COINOTAG will monitor related DOJ actions and asset recovery efforts; readers should report suspicious contact and preserve transaction records for investigators.
