Daren Li, facing up to 20 years in prison, has admitted to his role in laundering money in a $73 million cryptocurrency scam. This dual Chinese-American citizen has been charged with laundering funds obtained through various cryptocurrency scams.
Confession to Money Laundering Conspiracy
Daren Li, 41, pleaded guilty to conspiracy to commit money laundering. According to prosecutors, he was involved in a scheme that generated millions of dollars from cryptocurrency investment scams, including "pig butchering," from August 2021 to April 2024. The plea agreement was filed on November 11 in a California federal court.
Use of Fake Accounts and Crypto Transfers
Li admitted to orchestrating the opening of bank accounts in the U.S. under fake companies to "conceal or disguise the nature, location, source, and ownership" of the funds. After victims transferred money to these accounts, the funds were converted to Tether and subsequently distributed to wallets controlled by Li and his accomplices. One wallet involved in the scheme received over $341 million in digital assets.
Organized Money Laundering Through Fake Companies
Nicole M. Argentieri, head of the Justice Department’s Criminal Division, stated that Li committed the crime from abroad using "a network of shell companies and international bank accounts." Li also admitted that $73.6 million of stolen funds were directly deposited into bank accounts linked to the scheme, with at least $59.8 million deposited from U.S.-based shell companies.
Arrest and Sentencing Threat
Li was arrested on April 12 at Atlanta Airport, while his alleged accomplice, Yicheng Zhang, was arrested in Los Angeles on May 16. After pleading guilty, Judge R. Gary Klausner scheduled Li's sentencing for March 3, 2025.
Potential Sentence and Restitution
Li now faces up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the amount of proceeds from the crime, whichever is greater. The court may also require Li to pay restitution to the victims, ranging from $4.5 million to $73 million.
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