A major cross-border telecom fraud and crypto laundering case has recently reached sentencing. Su Jingliang, a Beijing resident, was sentenced to 46 months in prison for his role in laundering proceeds from a so-called “pig butchering” scam. The court ordered him to pay $26.87 million in restitution, with total laundered funds exceeding $36.9 million.
Fraud Scheme Built on Fake Crypto Investment Platforms
According to court filings, the fraud network targeted victims through social media and dating applications, gradually building trust before directing them to fraudulent crypto trading platforms. These platforms mimicked legitimate exchanges but displayed fabricated balances and returns, while victims’ funds were never invested in real markets.
Shell Companies and Stablecoins as Key Laundering Tools
Investigators found that stolen funds were first funneled into 74 U.S.-registered shell company bank accounts, then converted into USDT (Tether). The speed, liquidity, and cross-border portability of stablecoins made them central to the laundering process.
Su Jingliang was responsible for converting fiat proceeds into crypto assets and coordinating onward transfers, ultimately routing the funds to fraud hubs in Southeast Asia, completing the laundering cycle.
U.S. Authorities Dismantle Organized Scam Network
U.S. law enforcement agencies dismantled the broader international fraud and laundering network after reconstructing the full fund flow. The case involved multiple offenses, including telecom fraud, bank fraud, misuse of shell entities, and crypto-based money laundering—underscoring the industrialized nature of modern scam operations.
Stablecoin Abuse Raises Regulatory Concerns
The case highlights growing concern over stablecoins being exploited for illicit finance. Compared with traditional cross-border transfers, on-chain assets can move rapidly across addresses and jurisdictions, complicating enforcement and recovery efforts.
As regulators tighten oversight, stablecoin-related transaction monitoring and address-level risk assessment are becoming central to AML strategies worldwide.
Role of On-Chain Behavior Analysis in AML
Cases like this demonstrate the importance of detecting abnormal fund aggregation, repeated fiat-to-stablecoin conversions, and exposure to high-risk jurisdictions. Advanced on-chain behavior analysis enables investigators and compliance teams to surface hidden relationships and suspicious transaction patterns earlier.
This is where analytical frameworks—such as those employed in Trustformer KYT—focus on behavioral modeling, transaction context, and address risk attribution to support proactive crypto AML controls.
Broader Implications for the Crypto Industry
Beyond the sentencing itself, the case serves as a reminder of how digital assets can be abused when oversight is weak. As crypto assets continue integrating into the global financial system, traceability, risk identification, and transaction transparency will play a decisive role in shaping regulatory trust and sustainable industry growth.