Los Angeles Man Sentenced to Three Years for $36.9 Million Digital Asset Scam Laundering

A Los Angeles man was sentenced to three years in federal prison yesterday for his involvement in laundering over $36.9 million obtained through an international digital asset investment scam originating in Cambodia.

Jose Somarriba, 56, pleaded guilty in April to conspiracy to operate an unlicensed money services business and was sentenced Monday in Los Angeles federal court. According to the U.S. Department of Justice, Somarriba and four co-defendants facilitated the movement of funds defrauded from U.S. victims who believed they were investing in digital assets. The scheme involved gaining victims’ trust through social media, phone calls, texts, and online dating platforms before promoting fraudulent investments.

Court documents reveal that approximately $37 million in victim funds were initially transferred to an account at Deltec Bank in the Bahamas, under the name Axis Digital Limited. Somarriba and his associates then directed the bank to convert the funds into cryptocurrency and transfer them to digital asset wallets controlled by individuals in Cambodia, ultimately reaching the leaders of scam centers throughout the region. This case highlights the growing threat of cybercrime and its impact on investors. Co-defendant Shengsheng He, 40, of La Puente, received a sentence of four years and three months in September for his role in the scheme.

The Department of Justice stated that Somarriba co-founded Axis Digital and opened the Deltec Bank account used in the laundering operation. He was also ordered to pay $26.8 million in restitution. Officials indicated that further investigations are ongoing to identify and prosecute all individuals involved in this complex international fraud, and to recover additional stolen funds; you can learn more about digital asset fraud on the Department of Justice website.