Crypto Scammer Pleads Guilty To Laundering $73M in DOJ Crackdown

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• Chinese dual citizen Daren Li faces up to 20 years in prison for laundering millions of dollars from crypto investment scams.
• Li would instruct his co-conspirators to open U.S. bank accounts established under shell companies.
• In the first half of 2024, scammers reportedly collected $679 million in cryptocurrency.

A 41-year-old Chinese dual citizen has pleaded guilty to laundering over $73 million from the victims of several cryptocurrency scams .

$73 Million Stolen

Daren Li admitted to helping launder millions of dollars that his co-conspirators raised from a wide range of crypto investment scams.

Li would instruct his co-conspirators to open U.S. bank accounts established under shell companies and then monitor the receipt and execution of wire transfers of victim funds, according to court documents.

Funds from victims would be converted into digital currency such as Tether (USDT).

The documents said the fake bank accounts were used to “disguise the nature, location, source, ownership” of the funds.

Li admitted that at least $73.6 million in victim funds were directly deposited into bank accounts associated with him and his co-conspirators, with at least $59.8 million deposited from U.S. shell companies that laundered victim proceeds.

Arrest

Li was arrested on April 12 at Atlanta Airport in Georgia and has a sentencing hearing scheduled for March 3, 2025.

After pleading guilty, the 41-year-old could face a maximum sentence of 20 years behind bars.

“Financial criminals and the money launderers who enable them wreak untold harm, ruining lives in the process,” said United States Attorney Martin Estrada for the Central District of California.

“Investors should be diligent and on guard against anyone offering quick riches via new, exotic investments. A healthy dose of skepticism could prevent financial ruin down the road,” Estrada added.

Crypto Scams on The Rise

As the interest and user base of digital assets expands every year, so too does the proliferation of crypto scams.

Bad actors, who lure victims with promises of high returns, often exploit crypto’s technical complexity and anonymous nature to scam their victims.

In the first half of 2024, scammers collected $679 million in cryptocurrency, making it the most lucrative payment method behind only bank transfers, according to research from The Motley Fool.