California Resident Sentenced for Role in Cryptocurrency Fraud Scheme

Shengsheng He, a resident of La Puente, California, has been sentenced to 51 months in federal prison for his participation in a cryptocurrency investment scam that resulted in the loss of nearly $37 million. As part of the scheme, he operated Axis Digital Limited, a company registered in the Bahamas, where he laundered funds through Tether (USDT) before transferring them to fraudulent accounts. He is also ordered to repay $26.9 million in restitution. The case demonstrates ongoing efforts by the U.S. Department of Justice to combat global cryptocurrency fraud and money laundering. Notably, eight co-defendants have already pleaded guilty in this case.