A Chinese-American dual citizen, Daren Li, 41, has pleaded guilty to a conspiracy charge for laundering over $73 million stolen through crypto scams. This vast scheme, spanning from August 2021 to April 2024, used sophisticated crypto investment scams like "pig butchering" to defraud victims, according to court records filed on Nov. 11 in California.

Li admitted to directing associates to set up U.S.-based bank accounts under shell companies to obscure the origin and ownership of the stolen funds. Once victims transferred funds into these accounts, they were converted to Tether and moved into wallets controlled by Li and his network of conspirators. One such wallet reportedly amassed more than $341 million in digital assets, revealing the scope of the operation.

Nicole M. Argentieri, head of the Justice Department's Criminal Division, noted that Li's operation relied on an intricate network of international bank accounts and shell companies to execute the fraud beyond U.S. borders. Li acknowledged that $73.6 million in stolen funds passed through these accounts, with $59.8 million routed specifically through U.S. shell companies to evade detection.

Li’s co-conspirator, Yicheng Zhang, was arrested in Los Angeles on May 16, a month after Li’s arrest at Atlanta's airport. Following Li's guilty plea, Judge R. Gary Klausner set a sentencing hearing for March 3, 2025. Li could face up to 20 years in prison, substantial fines, and be ordered to repay victims—an amount that could reach up to $73 million.

This case highlights the lengths to which criminals go to exploit the crypto space, intensifying calls for stronger regulations to protect investors.