Michigan police make a cryptocurrency scam arrest over alleged $665,000 Bitcoin fraud

An Escanaba man who believed he was investing in Bitcoin handed over more than $500,000 in cash and shipped another $165,000 via FedEx, Michigan State Police said. The investigation led to the arrest of Zhong Jiang, 34, of Orland Hills, Illinois, in an alleged cryptocurrency scam involving approximately $665,000.

Key takeaways

• Zhong Jiang faces a felony charge of larceny by conversion involving $100,000 or more.
• Police traced the alleged payments to an in-person meeting and FedEx shipments.
• Jiang was extradited from Wisconsin, where he faced similar charges.
• His bond includes $400,000 cash/surety and a $GPS tether.

Cryptocurrency scam arrest leads to felony charge

Jiang was arraigned Monday in Delta County 94th District Court on one count of larceny by conversion of $100,000 or more. If convicted, he faces up to 10 years in prison.

Investigators said the Escanaba resident had been communicating with Jiang, who allegedly presented himself as a cryptocurrency investor. The resident believed the money was going into Bitcoin; police said Jiang was not a legitimate investor or broker.

During an in-person meeting, the resident reportedly gave Jiang more than $500,000 in U.S. currency. Another $165,000 in cash was subsequently sent through FedEx to out-of-state addresses, according to Michigan State Police.

Months-long investigation brought extradition from Wisconsin

The Michigan State Police Gladstone Post opened the investigation in July after receiving the scam report. Detectives spent several months investigating and identified Jiang as the suspect.

Police submitted the case to the Delta County Prosecutor’s Office, which issued a felony arrest warrant. Investigators also said Jiang was accused of similar crimes outside Michigan.

Michigan State Police extradited him from Waukesha, Wisconsin, where he was being held on similar charges involving alleged crimes in that state. He was booked into the Delta County Jail on October 15.

The investigation involved assistance from Escanaba Public Safety, Homeland Security Investigations, the Delafield Police Department, the Waukesha County Sheriff’s Office, the Internal Revenue Service and the county prosecutor’s office.

Police urge verification before sending money

Michigan State Police advised people to check legitimacy and contact local law enforcement before transferring money. Lt. Ben Eckola, the agency’s eighth district public information officer, credited the detectives, troopers and assisting agencies for their work.

“Unfortunately, scams like this can happen anywhere and anyone can be targeted. If you’re unsure if something is legitimate, contact your local law enforcement before sending money,” Eckola said.

Jiang’s bond was set at $400,000 cash/surety, with a $GPS tether as an additional condition. He remained jailed as of Wednesday and is scheduled to return to court on October 29.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.