In brief, A Chinese-American dual citizen, Daren Li, admitted his crime in California federal court on Nov. 11 for laundering proceeds from a $73 million crypto scam. He admitted to his role of being included in directing shell company accounts to hide the origins of stolen funds from unsuspecting investors.
Scheme Specifics and Cash Flow
Daren Li acknowledged that, between August 2021 and April 2024, he defrauded victims of millions of dollars by operating a cryptocurrency investment scam that included pig butchering. In order to launder the money, Li used to advise others to open bank accounts in the United States using shell corporations. The money was thereafter converted to Tether (USDT) and transferred to digital wallets under the control of the powerful individuals.. As per the court details, a single walled linked to the scam had received over $340 million which is just an absurd amount to even think of. Further more the filing said.
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Authorities Take Action
After being arrested at Atlanta airport in April, Li alongside his co-worker Yicheng Zhang, who was detained in Los Angeles were charged in May. Authorities noted that $73.6 million went swiftly and directly into accounts linked to the scheme, while $59.8 million flowed through U.S. shell companies created to further disguise the assets.
Upcoming Sentencing and Financial Penalties
Li’s sentencing has been scheduled for March 3, 2025 where he potentially faces upto 20 years in jail including about three years of supervised release and $500,000 fine. This doesn’t end the punishment because he may also be ordered to pay victims the amount they were scammed off which amounts to about $4.5 million and $73 million.
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