Originally published on: November 13, 2024
In a shocking revelation, a dual citizen of China has pleaded guilty to his involvement in laundering $73 million stolen through various cryptocurrency scams. Daren Li, aged 41, confessed to a conspiracy charge related to money laundering for his role in the elaborate scheme that operated from August 2021 to April 12, 2024.
Court documents unveiled that Li orchestrated the opening of US-based bank accounts under shell companies to conceal the origins and ownership of the misappropriated funds. Once victims unknowingly transferred millions into these accounts, the money was converted into Tether (USDT) and disseminated to wallets controlled by Li and his accomplices.
The operation was so grand in scale that one of the wallets involved received a staggering sum of over $341 million in digital assets. Nicole M. Argentieri, the head of the Justice Department’s Criminal Division, highlighted that Li carried out this offense abroad, utilizing a complex network of shell companies and international bank accounts.
The elaborate money laundering scheme saw $73.6 million directly deposited into bank accounts linked to the fraud, with an additional $59.8 million originating from US shell companies involved in the illicit activities. Li’s arrest at the Atlanta airport in Georgia in April was a significant breakthrough in cracking down on the scam, followed by the apprehension of Yicheng Zhang in Los Angeles.
With a maximum sentence of 20 years in prison, Li faces a tough road ahead. His sentencing hearing is scheduled for March 3, 2025, where he may also have to pay hefty fines and restitution to the victims, which could range from $4.5 million to $73 million.
This case serves as a stark reminder of the dangers lurking in the realm of cryptocurrency scams and the crucial need for stringent measures to combat such criminal activities. Stay informed with the latest updates on crypto laws and guidelines by subscribing to our newsletter and making informed decisions for your digital ventures. Subscribe now for more insightful articles like this.
