Daren Li, a 41-year-old dual citizen of China and St. Kitts and Nevis, has pleaded guilty to conspiracy to commit money laundering, linked to a $73 million cryptocurrency scam. According to the U.S. Department of Justice (DOJ), Li and his associates orchestrated a sophisticated “pig butchering” scam, laundering at least $73.6 million in victim funds through shell companies and international bank accounts.
Li Operated Scheme Remotely
The DOJ reported that Li instructed associates to open U.S. bank accounts under fictitious companies, converting stolen funds into Tether (USDT), which were then funneled into crypto wallets controlled by Li and his team. Although Li operated outside of the U.S., he was arrested at Atlanta’s Hartsfield-Jackson International Airport in April and later extradited to California, where he could face up to 20 years in prison. Sentencing is set for March 3, 2025.
United States Attorney Martin Estrada emphasized the devastating impact of financial crimes: “Financial criminals and the money launderers who enable them wreak untold harm, ruining lives in the process. Investors should be diligent and on guard against anyone offering quick riches via new, exotic investments.”
What Are “Pig Butchering” Scams?
In pig butchering scams, fraudsters build trust with victims, eventually persuading them to invest large sums before absconding with the funds. Regulatory bodies, including the Commodity Futures Trading Commission, have raised alarms over the rise in these scams, which are also spreading globally. Earlier this year, the Canadian Anti-Fraud Centre (CAFC) reported a surge in these schemes targeting Canadian citizens.
The Rise of Crypto Romance Scams
Crypto romance scams—another form of pig butchering—are increasingly prevalent, leaving many U.S. citizens financially devastated. For instance, Shreya Datta, a tech professional from Philadelphia, lost $450,000 to a crypto romance scam. Erin West, Deputy District Attorney in Santa Clara, California, said her office receives 5-6 reports daily from victims of these scams, some of whom have lost millions.
Tragically, stolen funds are often funneled to criminal organizations in Myanmar and Cambodia, where trafficked individuals are exploited to perpetrate these schemes.
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