Cryptocurrency Scam Suspect Arraigned in District Court

A California resident who was part of an alleged cryptocurrency investment scam that resulted in a Sheridan resident losing over $150,000, was arraigned in Fourth Judicial District Court Thursday. Sheridan Media’s Ron Richter has the details.

Last summer, a Sheridan resident was contacted on the phone by a woman posing to be a cryptocurrency broker. The bogus broker convinced the individual to wire $100,000 to an account named Zap Solutions at a bank in New Jersey as a cryptocurrency investment. According to court documents, the victim was told the money would be invested in the EDX cryptocurrency market, a digital asset marketplace that allows institutional investors to trade cryptocurrencies and other digital assets. Several months later, the victim wired an additional $50,075 to the Zap Solutions account for what was described as a “blockchain” fee that would allow him to make withdrawals from his account. In November, the victim contacted the Sheridan Police Department to report a fraud as the individual was still not able to access any of the money.

The victim was contacted again by the scamster and told another blockchain fee needed to be paid in order to access the money that was invested. When the victim told the caller that he was unable to wire any more money, the phony EDX employee arranged to have a woman come to the victim’s home in Sheridan to pick up the cash. On November 14, 2024, Jiahui Chen was arrested by law enforcement after arriving at the victim’s home to retrieve the cash. Law enforcement, in coordination with the victim, set up surveillance of the victim’s home prior to the suspect’s arrival.

At an arraignment hearing Thursday in District Court, Chen, via a Mandarin translator, pleaded not guilty to the charge of felony attempted theft. District Court Judge Darci Phillips scheduled a four-day jury trial to begin on May 19. A pretrial conference will take place April 22 at 9:30 am. Judge Phillips advised Chen that since she is not a U.S. citizen, she may be subject to deportation by the Department of Homeland Security. Chen’s bond was continued under the same terms and conditions that were previously set in Circuit Court. If convicted, Chen faces up to 10 years in prison and a fine of up to $10,000.