Two Individuals Charged with Laundering $43 Million from Investment Fraud Schemes
In a major blow to international cybercrime syndicates, US prosecutors have charged two individuals with their roles in a large-scale money laundering operation that funneled at least $43 million in stolen funds from investment scams into bank accounts in China. Zhuoying Chen and Haojie Zhang allegedly managed the network of over a dozen people based in New York’s Queens and Brooklyn neighborhoods between 2020 and 2022, using sophisticated tactics to evade detection.
The underlying schemes involved scammers contacting potential victims via social media or messaging services to build trust and persuade them to invest in fake opportunities. Victims were then shown fabricated profiles with supposed profits to encourage further investment, only to have additional funds stolen from their accounts. The two suspects allegedly transferred the laundered funds through 140 bank accounts under approximately 45 shell companies.
The indictment unsealed by US authorities highlights the severity of the crimes committed by Chen and Zhang. According to Executive Associate Director John A. Condon of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI), “For nearly two years, these two Chinese nationals allegedly ran a sophisticated, illicit network that laundered funds stolen from unsuspecting victims’ life savings.” Assistant Attorney General A. Tysen Duva added, “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.”
The charges against Chen and Zhang are particularly significant given the alarming rise of investment scams worldwide. According to the FBI’s 2025 Internet Crime Report, investment fraud accounted for nearly half of all scam-related incidents last year, resulting in reported losses of $8.6 billion – a staggering increase from $6.5 billion in 2024.
The case also underscores the importance of international cooperation in combating cybercrime. In recent months, authorities have made significant strides in dismantling investment fraud rings responsible for estimated losses of over €150 million to victims worldwide. The US has also established a new task force aimed at disrupting crypto-scam networks, and several suspects have been charged with their involvement in pig butchering schemes tied to millions of dollars in losses.
As these cases demonstrate, the threat of cybercrime is growing exponentially. To stay ahead of attackers, it’s essential for security teams to regularly test their defenses through breach and attack simulation exercises. By doing so, they can identify vulnerabilities and strengthen their systems to prevent successful attacks from slipping by detection.
Source: Bleeping Computer — 2026-07-17