A Chinese dual citizen has pleaded guilty for his role in helping launder $73 million that was stolen through various crypto scams.
Daren Li, 41, pleaded guilty to one count of conspiracy to commit money laundering for his role in the scheme, which prosecutors said raked in millions through crypto investment scams, such as pig butchering, from around August 2021 to April 12, according to a plea agreement filed on Nov. 11 in a California federal court.
Li admitted he instructed others to open United States-based bank accounts under shell companies to “conceal or disguise the nature, location, source, ownership” of the funds, the filing said.
Daren Li has admitted he helped his associates launder millions in funds stolen through various crypto scams. Source: CourtListener
After victims transferred millions of dollars into the accounts, the funds were ultimately converted into Tether (USDT) and distributed to wallets controlled by Li and his co-conspirators.
One of the wallets involved in the scheme had received more than $341 million in digital assets, according to court documents.
Head of the Justice Department’s Criminal Division, Nicole M. Argentieri, said in a Nov. 12 statement that Li committed this offense outside the US, using “a web of shell companies and international bank accounts.”
Li admitted $73.6 million in stolen funds were directly deposited into bank accounts associated with the scheme, and at least $59.8 million was deposited from US shell companies which helped launder the proceeds.
He was arrested at Atlanta airport in Georgia on April 12, while his alleged co-conspirator, Yicheng Zhang, was arrested in Los Angeles on May 16.
Initially, Li was charged with conspiring to launder money and six counts of international money laundering; if found guilty, he faced a maximum sentence of 20 years imprisonment for each count, totaling 140 years behind bars.
After pleading guilty, Judge R. Gary Klausner scheduled a sentencing hearing for Li on March 3, 2025.
He is facing a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the gross resulting from the offense, whichever is larger.
As part of the sentencing, prosecutors have also flagged the possibility he might be “required to pay full restitution to the victims,” which could be between $4.5 million and $73 million.
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