Daren Li, a 41-year-old dual citizen of China and St. Kitts and Nevis, has pleaded guilty to conspiracy to commit money laundering involving a crypto scheme.
Daren Li, a 41-year-old dual citizen of China and St. Kitts and Nevis, has pleaded guilty to conspiracy to commit money laundering involving a crypto scheme that defrauded victims of approximately $73 million. The U.S. Department of Justice (DOJ) announced Li's guilty plea on Tuesday, detailing his role in a sophisticated scam known as “pig butchering.”
Li admitted to laundering at least $73.6 million in funds obtained from victims as part of a broader network of fraudulent crypto investment schemes. According to the DOJ, he directed co-conspirators to establish U.S. bank accounts under the names of shell companies.
These accounts were then used to facilitate the conversion of victim funds into Tether (USDT), a popular cryptocurrency, which was subsequently distributed to wallets controlled by Li and his associates.
The DOJ emphasized that despite operating from outside the United States, Li was apprehended and brought to justice. He was arrested in April at the Hartsfield-Jackson Atlanta International Airport and later transferred to the Central District of California for prosecution.
Li faces a maximum sentence of 20 years in prison, with sentencing scheduled for March 3, 2025. The scheme he participated in is characterized by fraudsters establishing trust with their victims, convincing them to invest large sums before disappearing with the funds.
Regulatory bodies, including the Commodity Futures Trading Commission, have expressed increasing concern over the prevalence of such scams which exploit the vulnerabilities of investors in the crypto market.
The case serves as a reminder of the risks associated with digital investments and the ongoing efforts to combat financial fraud.
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