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Every state-changing event for Zhuoying Chen & Haojie Zhang — $43M Pig-Butchering Laundering Network: moderation decisions on community submissions, plus corrections and updates from the news pipeline. URL-based decisions are designed to carry three independent witnesses — the original source, an Internet Archive snapshot, and a Solana memo signed by our publicly-disclosed publisher key. Archive coverage is still being backfilled, so each decision below reports its own snapshot status rather than assuming one exists.

1. #1publishby system:backfill

   2026-08-08 12:20:40Z
   Score: ? → ? (no score change)
   anchorpending

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   {"actor":"system:backfill","investigation_id":"79dfde41-3b34-4e86-bd07-77de7e4846e9","kind":"publish","page_slug":"zhuoying-chen-haojie-zhang-43m-pig-butchering-laundering-network","published_at":"2026-08-08T12:20:40.527Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Zhuoying Chen & Haojie Zhang — $43M Pig-Butchering Laundering Network","sections":[{"content":"On July 16, 2026, an indictment was unsealed in the Eastern District of New York (Brooklyn) charging Zhuoying Chen and Haojie Zhang with a single count of conspiracy to commit money laundering. The charge carries a statutory maximum of 20 years in federal prison. Both defendants made initial court appearances in Brooklyn federal court on the day the indictment was unsealed. The prosecution is led by Trial Attorneys Claire Galasso, David Ginensky, and Adrienne Rosen of the DOJ Criminal Division, along with Assistant U.S. Attorneys Benjamin Weintraub and David Berman of the Eastern District of New York. The case was announced by Assistant Attorney General A. Tysen Duva of the Criminal Division and U.S. Attorney Joseph Nocella Jr. of the Eastern District of New York. Investigating agencies include the FBI New York field office, Homeland Security Investigations (HSI), IRS Criminal Investigation New York, and the U.S. Postal Inspection Service New York.","heading":"Federal Charges and Indictment","severity":"critical","sources":[{"credibility":1,"name":"DOJ Office of Public Affairs — Two Key Members of Chinese Money Laundering Network Charged","type":"regulatory","url":"https://www.justice.gov/opa/pr/two-key-members-chinese-money-laundering-network-charged-laundering-43-million-investment"},{"credibility":1,"name":"DOJ EDNY — Two Members of Chinese Money Laundering Network Charged","type":"regulatory","url":"https://www.justice.gov/usao-edny/pr/two-members-chinese-money-laundering-network-charged-laundering-investment-fraud"}]},{"content":"According to the indictment, between 2020 and 2022, Chen and Zhang allegedly managed a network of more than a dozen individuals based in Brooklyn and Queens who collectively opened 140 bank accounts registered under approximately 45 shell companies. These accounts were used to receive and layer the proceeds of pig-butchering investment fraud schemes. The structure is consistent with a Chinese-language money laundering network (CMLN) providing a domestic 'cashing out' and conversion layer for overseas scam operators. After funds were layered through the shell company accounts, Chen and Zhang allegedly arranged for conversion of the proceeds into cryptocurrency, which was then transferred to China-based co-conspirators. The use of shell companies and nominee bank accounts to layer fraud proceeds before converting to cryptocurrency for offshore remittance is a documented technique in federal prosecutions of CMLN-linked actors.","heading":"Alleged Scheme: Money Mule Network and Shell Company Infrastructure","severity":"critical","sources":[{"credibility":1,"name":"DOJ Office of Public Affairs — Two Key Members of Chinese Money Laundering Network Charged","type":"regulatory","url":"https://www.justice.gov/opa/pr/two-key-members-chinese-money-laundering-network-charged-laundering-43-million-investment"},{"credibility":2,"name":"Bleeping Computer — US charges two over laundering $43 million from investment fraud","type":"news_article","url":"https://www.bleepingcomputer.com/news/security/us-charges-two-over-laundering-43-million-from-investment-fraud/amp/"},{"credibility":2,"name":"The Cyber Express — Zhuoying Chen +1 Charged In Chinese Money Laundering Case","type":"news_article","url":"https://thecyberexpress.com/chinese-money-laundering/"}]},{"content":"The laundered funds are alleged to be proceeds from pig-butchering scams, a category of investment fraud in which perpetrators establish contact with victims via messaging services or social media applications. Perpetrators build extended trust relationships with victims over weeks or months before introducing purportedly lucrative investment opportunities, typically centered on cryptocurrency trading platforms. Victims are shown fabricated account dashboards reflecting growing profits, which encourages additional deposits. Once victims attempt to withdraw funds, they discover the platforms are fraudulent and their money has been stolen. The term 'pig butchering' refers to the practice of 'fattening' victims before stealing their funds. The FBI reported that cryptocurrency investment fraud losses in the United States rose from $907 million in 2021 to $2.57 billion in 2022, a 183% increase, with pig-butchering schemes constituting the dominant category. Chen and Zhang are not alleged to have operated the underlying fraud platforms; their alleged role was laundering the proceeds after victims' funds were stolen.","heading":"Underlying Fraud: Pig-Butchering Investment Schemes","severity":"high","sources":[{"credibility":1,"name":"DOJ Office of Public Affairs — Two Key Members of Chinese Money Laundering Network Charged","type":"regulatory","url":"https://www.justice.gov/opa/pr/two-key-members-chinese-money-laundering-network-charged-laundering-43-million-investment"},{"credibility":2,"name":"Forbes — Crypto Scams, Pig Butchering And Cybercrimes From The New FBI Report","type":"news_article","url":"https://www.forbes.com/sites/digital-assets/2025/04/25/crypto-scams-pig-butchering-and-cybercrimes-from-the-new-fbi-report/"},{"credibility":1,"name":"FinCEN Alert on Pig Butchering Scams","type":"regulatory","url":"https://www.fincen.gov/system/files/shared/FinCEN_Alert_Pig_Butchering_FINAL_508c.pdf"}]},{"content":"A defining feature of the alleged scheme is the conversion of layered bank proceeds into cryptocurrency for transfer to China-based co-conspirators. This conversion step — from fiat held in domestic shell company accounts to cryptocurrency routed overseas — is consistent with documented methodologies used by Chinese-language money laundering networks (CMLNs). According to Chainalysis's 2026 Crypto Crime Report, CMLNs processed approximately $16.1 billion in illicit funds in 2025 alone, representing over 20% of tracked cryptocurrency laundering activity globally. By 2024, CMLNs had grown to process over 20% of pig-butchering scam laundering flows per quarter, up from less than 1% in early 2022. The indictment does not publicly specify which cryptocurrencies or exchanges were used by Chen and Zhang, nor has on-chain attribution been publicly disclosed as of the indictment filing.","heading":"Cryptocurrency Conversion and Overseas Remittance","severity":"high","sources":[{"credibility":1,"name":"DOJ Office of Public Affairs — Two Key Members of Chinese Money Laundering Network Charged","type":"regulatory","url":"https://www.justice.gov/opa/pr/two-key-members-chinese-money-laundering-network-charged-laundering-43-million-investment"},{"credibility":2,"name":"Chainalysis — The Chinese-language Underground Crypto Money Laundering Ecosystem (2026)","type":"research","url":"https://www.chainalysis.com/blog/2026-crypto-money-laundering/"},{"credibility":2,"name":"CryptoNews — Chinese-Language Money Laundering Networks Processed $16.1B","type":"news_article","url":"https://cryptonews.com/news/chinese-language-money-laundering-networks-processed-16-1b-in-illicit-crypto-chainalysis/"}]},{"content":"The Chen and Zhang case is part of a significantly heightened DOJ enforcement posture against pig-butchering infrastructure in 2026. Concurrent major actions include: the DOJ Scam Center Strike Force's seizure of $701.96 million in cryptocurrency linked to the Shunda compound in Burma (April 2026); a $61 million Tether seizure tied to pig-butchering in North Carolina; Operation Atlantic targeting approval-phishing vectors ($12 million frozen, 120+ domains disrupted); and Operation Level Up, through which the FBI had notified 8,935 victims of active pig-butchering victimization by March 2026, with 93 referred for suicide intervention. The Chen and Zhang prosecution is notable for focusing specifically on the U.S.-domestic money laundering infrastructure — the domestic shell company and bank account layer — rather than the overseas scam operators, representing a prosecutorial strategy to dismantle the financial plumbing that enables overseas syndicates to extract victim funds into Chinese banking systems.","heading":"Broader Enforcement Context: 2026 DOJ Pig-Butchering Crackdown","severity":"high","sources":[{"credibility":2,"name":"CryptoTimes — The 2026 Pig Butchering Reckoning: Inside the Year's Biggest Crypto Scam Crackdowns","type":"news_article","url":"https://www.cryptotimes.io/2026/05/05/2026-pig-butchering-crypto-scam-crackdowns/"},{"credibility":2,"name":"TRM Labs — DOJ Seizes $61 Million Tied to Pig Butchering Scam","type":"research","url":"https://www.trmlabs.com/resources/blog/doj-seizes-usd-61-million-tied-to-pig-butchering-scam-in-north-carolina"},{"credibility":2,"name":"InvestorClaims — How Disruption Week Exposed the Scale of Pig Butchering Scams","type":"news_article","url":"https://investorclaims.com/blog/doj-scam-center-strike-force-disruption-week-cryptocurrency-fraud/"}]},{"content":"Zhuoying Chen, also known as 'Jolene,' is 27 years old and a resident of Brooklyn, New York at the time of the indictment. Haojie Zhang, also known as 'Kevin,' is 38 years old and a resident of Queens, New York. Both resided in New York City neighborhoods with substantial Chinese-American communities. The indictment does not publicly allege that either defendant personally operated pig-butchering fraud platforms or contacted victims directly; their alleged role was in managing the domestic money laundering network that received and processed victim funds on behalf of the broader conspiracy. No prior criminal history, professional background, or other identifying information for either defendant has been publicly disclosed as of the indictment filing. The aliases 'Jolene' and 'Kevin' were noted in the DOJ press release but their operational significance is not detailed in public charging documents.","heading":"Defendant Profiles","severity":"medium","sources":[{"credibility":1,"name":"DOJ Office of Public Affairs — Two Key Members of Chinese Money Laundering Network Charged","type":"regulatory","url":"https://www.justice.gov/opa/pr/two-key-members-chinese-money-laundering-network-charged-laundering-43-million-investment"},{"credibility":2,"name":"Northwest Asian Weekly — Chen, Zhang accused of laundering $43 million from investment scams","type":"news_article","url":"https://nwasianweekly.com/2026/07/chen-zhang-accused-of-laundering-43-million-from-investment-scams/"}]},{"content":"The IRS Criminal Investigation (CI) New York field office is listed as a co-investigating agency in the case. IRS-CI involvement in money laundering prosecutions of this type typically indicates the investigation included financial forensics — analysis of bank records, tax filings, and financial flows — in addition to the investigative work of the FBI and HSI. The U.S. Postal Inspection Service New York was also a participating agency. The multi-agency structure suggests a broad investigation that likely encompassed financial record subpoenas across the approximately 45 shell companies and 140 bank accounts identified in the indictment.","heading":"IRS Criminal Investigation Involvement","severity":"medium","sources":[{"credibility":1,"name":"IRS Criminal Investigation — Two Members of Chinese Money Laundering Network Charged","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/two-members-of-chinese-money-laundering-network-charged-laundering-investment-fraud-proceeds"}]},{"content":"As of the date of this report (August 2026), the charges against Zhuoying Chen and Haojie Zhang remain allegations. Both defendants are presumed innocent unless and until proven guilty in a court of law. The indictment represents the government's theory of the case; no conviction has been entered. The DOJ press release itself notes this standard: 'An indictment is an accusation, not proof of guilt.' Coverage of this case should be understood in that context.","heading":"Presumption of Innocence","severity":"low","sources":[{"credibility":1,"name":"DOJ Office of Public Affairs — Two Key Members of Chinese Money Laundering Network Charged","type":"regulatory","url":"https://www.justice.gov/opa/pr/two-key-members-chinese-money-laundering-network-charged-laundering-43-million-investment"}]}],"sources_used":[{"credibility":1,"name":"DOJ Office of Public Affairs — Two Key Members of Chinese Money Laundering Network Charged with Laundering $43 Million in Investment Fraud Proceeds","type":"regulatory","url":"https://www.justice.gov/opa/pr/two-key-members-chinese-money-laundering-network-charged-laundering-43-million-investment"},{"credibility":1,"name":"DOJ EDNY — Two Members of Chinese Money Laundering Network Charged with Laundering Investment Fraud Proceeds","type":"regulatory","url":"https://www.justice.gov/usao-edny/pr/two-members-chinese-money-laundering-network-charged-laundering-investment-fraud"},{"credibility":1,"name":"IRS Criminal Investigation — Two Members of Chinese Money Laundering Network Charged with Laundering Investment Fraud Proceeds","type":"regulatory","url":"https://www.irs.gov/compliance/criminal-investigation/two-members-of-chinese-money-laundering-network-charged-laundering-investment-fraud-proceeds"},{"credibility":1,"name":"FinCEN Alert on Pig Butchering Scams","type":"regulatory","url":"https://www.fincen.gov/system/files/shared/FinCEN_Alert_Pig_Butchering_FINAL_508c.pdf"},{"credibility":2,"name":"Hoodline — Brooklyn and Queens Locals Nabbed in Alleged $43M Pig-Butchering Cash Wash","type":"news_article","url":"https://hoodline.com/2026/07/brooklyn-and-queens-locals-nabbed-in-alleged-43m-pig-butchering-cash-wash/"},{"credibility":2,"name":"Bleeping Computer — US charges two over laundering $43 million from investment fraud","type":"news_article","url":"https://www.bleepingcomputer.com/news/security/us-charges-two-over-laundering-43-million-from-investment-fraud/amp/"},{"credibility":2,"name":"The Cyber Express — Zhuoying Chen +1 Charged In Chinese Money Laundering Case","type":"news_article","url":"https://thecyberexpress.com/chinese-money-laundering/"},{"credibility":2,"name":"Northwest Asian Weekly — Chen, Zhang accused of laundering $43 million from investment scams","type":"news_article","url":"https://nwasianweekly.com/2026/07/chen-zhang-accused-of-laundering-43-million-from-investment-scams/"},{"credibility":2,"name":"SC World — Two charged in New York for laundering $43 million from investment scams","type":"news_article","url":"https://www.scworld.com/brief/two-charged-in-new-york-for-laundering-43-million-from-investment-scams"},{"credibility":2,"name":"QChron — Feds charge two in 'pig butchering' scam","type":"news_article","url":"https://www.qchron.com/editions/north/feds-charge-two-in-pig-butchering-scam/article_caf57954-3555-5e2b-9778-dd76b3f9256a.html"},{"credibility":2,"name":"BKReader — Brooklyn Woman Accused of $40M Investment Fraud","type":"news_article","url":"https://www.bkreader.com/policy-government/brooklyn-woman-accused-of-40m-investment-fraud-12567807"},{"credibility":2,"name":"CU Today — Feds Charge Two In $43-Million 'Pig Butchering' Money Laundering Scheme","type":"news_article","url":"https://www.cutoday.info/Fresh-Today/Feds-Charge-Two-In-43-Million-Pig-Butchering-Money-Laundering-Scheme"},{"credibility":2,"name":"Chainalysis — The Chinese-language Underground Crypto Money Laundering Ecosystem (2026 Crypto Crime Report)","type":"research","url":"https://www.chainalysis.com/blog/2026-crypto-money-laundering/"},{"credibility":2,"name":"Chainalysis — 2026 Crypto Crime Report: Scams (Record $17 Billion Estimated Stolen)","type":"research","url":"https://www.chainalysis.com/blog/crypto-scams-2026/"},{"credibility":2,"name":"CryptoNews — Chinese-Language Money Laundering Networks Processed $16.1B in Illicit Crypto","type":"news_article","url":"https://cryptonews.com/news/chinese-language-money-laundering-networks-processed-16-1b-in-illicit-crypto-chainalysis/"},{"credibility":2,"name":"TRM Labs — DOJ Seizes $61 Million Tied to Pig Butchering Scam in North Carolina","type":"research","url":"https://www.trmlabs.com/resources/blog/doj-seizes-usd-61-million-tied-to-pig-butchering-scam-in-north-carolina"},{"credibility":2,"name":"CryptoTimes — The 2026 Pig Butchering Reckoning: Inside the Year's Biggest Crypto Scam Crackdowns","type":"news_article","url":"https://www.cryptotimes.io/2026/05/05/2026-pig-butchering-crypto-scam-crackdowns/"},{"credibility":2,"name":"Forbes — Crypto Scams, Pig Butchering And Cybercrimes From The New FBI Report","type":"news_article","url":"https://www.forbes.com/sites/digital-assets/2025/04/25/crypto-scams-pig-butchering-and-cybercrimes-from-the-new-fbi-report/"},{"credibility":2,"name":"InvestorClaims — How Disruption Week Exposed the Scale of Pig Butchering Scams Targeting Americans","type":"news_article","url":"https://investorclaims.com/blog/doj-scam-center-strike-force-disruption-week-cryptocurrency-fraud/"}],"summary":"Zhuoying Chen (aka 'Jolene,' 27, Brooklyn, NY) and Haojie Zhang (aka 'Kevin,' 38, Queens, NY) were charged by federal prosecutors on July 16, 2026 with conspiracy to commit money laundering in connection with laundering at least $43 million in proceeds from pig-butchering investment fraud schemes between 2020 and 2022. The pair allegedly managed a domestic infrastructure layer of a China-linked criminal network, recruiting over a dozen money mules across Brooklyn and Queens who opened 140 bank accounts under approximately 45 shell companies, then converted the layered funds to cryptocurrency for transfer to China-based co-conspirators. Both defendants face up to 20 years in prison.","timeline":[{"date":"2020-01-01","event":"Alleged money laundering scheme begins. Chen and Zhang allegedly begin managing a network of money mules in Brooklyn and Queens who open bank accounts under shell companies to receive pig-butchering fraud proceeds.","source":"DOJ Office of Public Affairs","source_url":"https://www.justice.gov/opa/pr/two-key-members-chinese-money-laundering-network-charged-laundering-43-million-investment"},{"date":"2022-12-31","event":"Alleged scheme concludes. By end of 2022, the network had allegedly laundered at least $43 million across 140 bank accounts under approximately 45 shell companies, converting funds to cryptocurrency for remittance to China-based co-conspirators.","source":"DOJ Office of Public Affairs","source_url":"https://www.justice.gov/opa/pr/two-key-members-chinese-money-laundering-network-charged-laundering-43-million-investment"},{"date":"2026-07-16","event":"Federal indictment unsealed in the Eastern District of New York (Brooklyn) charging Zhuoying Chen and Haojie Zhang with conspiracy to commit money laundering. Both defendants appear in Brooklyn federal court. Case announced by DOJ, IRS-CI, FBI, HSI, and U.S. Postal Inspection Service.","source":"DOJ Office of Public Affairs","source_url":"https://www.justice.gov/opa/pr/two-key-members-chinese-money-laundering-network-charged-laundering-43-million-investment"}]},"v":1}

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