cryptojournalist
Daren Li, a 41-year-old Chinese dual citizen, has admitted to helping launder $73 million that was stolen through a series of crypto scams, including a type of scam called “pig butchering.” The scheme lasted from August 2021 to April 2024, with millions of dollars taken from unsuspecting victims.
How Li Was Involved
Li played a key role by directing others to create fake companies in the U.S. and open bank accounts in their names. These accounts were used to hide where the stolen money was coming from. Once the funds were in the accounts, they were converted into Tether (USDT), a type of cryptocurrency, and sent to wallets controlled by Li and his co-conspirators.
The Size of the Operation
One of the wallets used in the scheme received over $341 million in crypto. Li admitted that at least $73.6 million in stolen funds went through the U.S. bank accounts, with another $59.8 million funneled through fake companies in the U.S.
What’s Next for Li
Li was arrested at the airport in Atlanta in April 2024. His alleged partner in the scheme, Yicheng Zhang, was arrested a month later in Los Angeles. Li now faces up to 20 years in prison when he is sentenced in March 2025. He may also be required to pay restitution to the victims, which could range from $4.5 million to $73 million.
*Pig Butchering Scam: A type of scam where fraudsters trick people into investing in fake opportunities over time, building trust before stealing their money.
*Tether (USDT): A type of cryptocurrency that’s tied to the U.S. dollar, commonly used for trading and transferring funds.
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