• 2 min read
Two Charged in $43 Million Investment Scam Laundering Case
Two New York residents allegedly laundered $43 million from investment scams through 140 bank accounts and 45 shell companies.
Image: BleepingComputer
U.S. prosecutors on Thursday charged 27-year-old Zhuoying Chen and 38-year-old Haojie Zhang, alleging that the New York-based pair helped run a network laundering at least $43 million stolen through cyber investment fraud schemes.
According to an unsealed indictment, Chen and Zhang managed a group of more than a dozen people operating in Queens and Brooklyn between 2020 and 2022. The network allegedly moved the proceeds to bank accounts in China through 140 accounts controlled by roughly 45 shell companies.
The underlying scams typically began on social media or messaging services, where criminals built relationships with potential victims and promoted fraudulent investment opportunities. Fake profiles showing fabricated profits were then used to persuade victims to invest more money before the 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 face a maximum sentence of 20 years in prison.
The FBI’s 2025 Internet Crime Report said investment fraud represented 49% of all scam-related incidents in 2025, with reported losses of $8.6 billion, up from $6.5 billion in 2024.
The charges follow several recent U.S. actions against similar schemes:
- In February, 42-year-old Daren Li was sentenced in absentia to 20 years for his role in a $73 million international cryptocurrency investment scheme, also known as pig butchering or romance baiting. Eight other accomplices have pleaded guilty.
- In December, the Justice Department charged four additional suspects over a pig-butchering scheme linked to more than $80 million in losses.
- In November, federal authorities created the Scam Center Strike Force after the Justice Department seized $15 billion from the leader of Prince Group, a criminal organization accused of targeting Americans through cryptocurrency investment scams.
European authorities have also dismantled two investment-fraud rings since the start of the year, with estimated worldwide victim losses exceeding €150 million.
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
