China Dual Citizen Daren Li Organizing $73 Million Crypto Fraud Schemes

Daren Li, a dual citizen from China, has admitted to laundering $73 million from various cryptocurrency scams. 

Li, 41, pleaded guilty in a California court, acknowledging his role in organizing fraud schemes, including a type known as “pig butchering,” from August 2021 to April 2024. Prosecutors said he directed others to set up U.S. bank accounts under fake company names to hide the illegal origins and ownership of the funds.

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Nicole M. Argentieri, who leads the Justice Department’s Criminal Division, explained that Li operated the scheme from outside the U.S., using fake companies and foreign bank accounts to avoid detection.

Victims unknowingly transferred millions into accounts controlled by Li’s team, which were converted into Tether (USDT) and stored in digital wallets managed by him and his associates. 

One wallet reportedly held over $341 million in crypto assets, with $73.6 million ending up in Li’s accounts. Records show $59.8 million was moved through fake U.S.-based companies.

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Li was detained on April 12 at Atlanta airport, and his alleged partner, Yicheng Zhang, was arrested in Los Angeles the following month. 

Li’s sentencing is set for March 3, 2025, where he could face up to 20 years in prison, supervised release, and a large fine.