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A Chinese dual citizen pleaded guilty for his role in helping launder $73 million stolen through various crypto scams.
Daren Li, 41, pleaded guilty to one count of conspiracy to commit money laundering for his role in the scheme, which prosecutors said raked in millions through <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/articles/crypto-hacks-and-scams" rel="null" target="null" text="null" title="null">crypto investment scams</a>, including<a data-ct-non-breakable="null" href="https://cointelegraph.com/news/inside-pig-butchering-scam-victims-share-stories" rel="null" target="null" text="null" title="null"> pig butchering</a>, from around August 2021 to April 12, 2024, according to a plea agreement <a data-ct-non-breakable="null" href="https://www.courtlistener.com/docket/68536291/51/united-states-v-li/" rel="null" target="null" text="null" title="null">filed</a> on Nov. 11 in a California federal court.
Li admitted he instructed others to open United States-based bank accounts under shell companies to “conceal or disguise the nature, location, source, ownership” of the funds, the filing said.
<figure>
 <img alt="Cryptocurrencies, Law, United States, Crimes" src="https://s3.cointelegraph.com/uploads/2024-11/01932423-eba8-7c5a-b483-45dacdec1a55" title="">
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 Daren Li admitted he helped associates launder millions in funds stolen through various crypto scams. Source: CourtListener&nbsp;
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After victims transferred millions of dollars into the accounts, the funds were ultimately converted into Tether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/tether-price-index" rel="null" target="null" text="null" title="null">USDT</a>) and distributed to <a data-ct-non-breakable="null" href="https://cointelegraph.com/explained/crypto-wallets-explained" rel="null" target="null" text="null" title="null">wallets controlled</a> by Li and his co-conspirators.&nbsp;
One of the wallets involved in the scheme had received more than $341 million in digital assets, according to court documents.
Head of the Justice Department’s Criminal Division, Nicole M. Argentieri, <a data-ct-non-breakable="null" href="https://www.justice.gov/usao-cdca/pr/foreign-national-pleads-guilty-laundering-millions-dollars-illicit-proceeds" rel="null" target="null" text="null" title="null">said</a> in a Nov. 12 statement that Li committed this offense outside the US, using “a web of shell companies and international bank accounts.”
Li admitted that $73.6 million in stolen funds was directly deposited into bank accounts associated with the scheme, and at least $59.8 million was deposited from US shell companies that helped launder the proceeds.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/crypto-hacks-exploits-losses-october-2024" rel="null" target="null" text="null" title="null">October crypto losses reach $129M from hacks and exit scams</a>
He was <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/us-authorities-take-down-73m-crypto-money-laundering-scheme" rel="null" target="null" text="null" title="null">arrested at Atlanta airport in Georgia</a> on April 12, while his alleged co-conspirator, Yicheng Zhang, was arrested in Los Angeles on May 16.
After Li pleaded guilty, Judge R. Gary Klausner scheduled a sentencing hearing for him on March 3, 2025.&nbsp;
He is facing a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the gross resulting from the offense, whichever is larger.
As part of the sentencing, prosecutors also flagged the possibility he might be “required to pay full restitution to the victims,” which could be between $4.5 million and $73 million.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/web3-crypto-gaming-tokens-chiliz-farm-tap-review-web3-gamer/" rel="null" target="null" text="null" title="null">Will gaming token ‘enthusiasm’ return this crypto bull run? Web3 Gamer</a>

Crypto scam launderer pleads guilty to role in $73M scheme

Cointelegraph

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