A dual citizen of China and the United States has admitted to involvement in a crypto scam, in which an estimated $73 million was laundered.
The defendant, 41-year-old Daren Li, confessed to his role in the scheme, which spanned various cryptocurrency scams and ran from August 2021 until April 2024. Li entered a guilty plea on November 11 in federal court in California, acknowledging conspiracy charges to commit money laundering.
As revealed in the plea agreement, Li actively directed others to open US-based bank accounts using shell companies. The objective was to obscure the origins and ownership of the illicit funds.
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According to court documents, once the stolen assets were funneled into these accounts, the funds were converted into Tether
$1.00
. One particular wallet associated with the scheme reportedly processed over $341 million in digital assets. The scheme employed tactics such as “pig butchering”—a common fraud technique where victims are lured through fake investment opportunities.
Li’s plea agreement also noted that $73.6 million in stolen funds flowed directly into bank accounts associated with the fraudulent network, with an additional $59.8 million being laundered through US-based shell companies.
Following months of covert investigation, Li was detained on April 12 at the Atlanta airport in Georgia, with his alleged co-conspirator, Yicheng Zhang, being taken into custody in Los Angeles on May 16.
Li now awaits sentencing, with the court date set for March 3, 2025. Should he receive the maximum penalty, Li could face up to 20 years in prison, in addition to a possible $500,000 fine—or twice the amount gained through his illegal activities.
Beyond these penalties, prosecutors have hinted at the possibility of restitution, suggesting that Li may be required to repay the victims, with the restitution amount potentially ranging from $4.5 million to the full $73 million involved in the scheme.
In other news, Caitlyn Jenner is facing a lawsuit from buyers over the crash of her celebrity-endorsed cryptocurrency. What led to this legal backlash? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
