- Daren Li, a Chinese citizen, pleaded guilty to conspiracy to help launder $73 million stolen in cryptocurrency scams.
- Li laundered funds using a network of shell companies and international bank accounts.
- Li was arrested at Atlanta airport in April, while co-conspirator Yicheng Zhang was arrested in Los Angeles in May.
A Chinese dual citizen has pleaded guilty for his involvement in laundering $73 million obtained through multiple crypto fraud schemes.
Daren Li, 41, pleaded guilty to conspiracy to commit money laundering. Prosecutors revealed in a plea agreement filed on Monday in a federal court in California that the scheme generated millions through various crypto investment scams, including “pig butchering” fraud, from August 2021 to April 12, 2024.
Li admitted to directing associates to open US-based bank accounts under shell companies to conceal illicit funds' nature, location, source, and ownership.
Nicole M. Argentieri, head of the Justice Department’s Criminal Division, stated on Tuesday that Li orchestrated the crime from outside the US, leveraging “a web of shell companies and international bank accounts.”
Shell companies, US accounts used to launder funds
Victims transferred millions into accounts, converted to Tether (USDT), and sent them to wallets Li and his accomplices managed. Court records show that one of these wallets received over $341 million in digital assets.
Li has confirmed that $73.6 million of the misappropriated funds went directly into bank accounts linked to the operation. At least $59.8 million was deposited from US-based shell companies laundering the proceeds.
Li was detained on April 12 at Atlanta airport, while his alleged partner, Yicheng Zhang, was apprehended in Los Angeles on May 16. After Li's guilty plea, the judge has scheduled the sentence for March 3, 2025.
Li could receive a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or double the financial gains from the crime, whichever is higher.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple Price Prediction: Whale accumulation sparks hope as rising exchange reserves signal caution
XRP sustains mid-week recovery as XRP/BTC flashes golden cross for the first time since 2017. Large volume holders increase XRP exposure, indicating rising demand and investor confidence.
Pi Network Price Forecast: PI eyes $0.66 as whale activity surges
Pi Network (PI) declines by nearly 4% on Friday, trading at $0.79 at press time. The technical outlook suggests a downward move ahead as the short-term recovery concludes with a trendline breakdown.
Bitcoin Weekly Forecast: BTC enters full price-discovery mode after seven straight weeks of gains
Bitcoin price stabilizes around $111,000 on Friday after reaching a new all-time high of $111,900 this week. Corporate accumulation, institutional demand, signs of easing regulations and fiscal woes in the US have fueled BTC’s rally.
Jupiter Price Forecast: JUP eyes $0.82 as Fluid backs Jupiter's upcoming lending protocol
Jupiter exchanges announced the upcoming launch of Jupiter Lend, powered by Fluid, on Solana this summer. With the announcement of Jupiter Lend, the JUP token surged 16% in the last 24 hours.
Bitcoin: BTC enters full price-discovery mode after seven straight weeks of gains
Bitcoin (BTC) price stabilizes near $111,000 on Friday after reaching a new all-time high of $111,900 this week. BTC enters an uncharted territory as a perfect storm of corporate accumulation, institutional demand, signs of easing regulation and increasing concerns among investors about debt sustainability in the United States (US) have fueled bullish momentum.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.