Daren Li admits role in laundering $73.6 million from crypto fraud schemes, emphasizing the need for global cooperation in tackling cybercrime.
A foreign national pleaded guilty today to laundering funds from cryptocurrency investment scams. Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, admitted his role in a conspiracy to commit money laundering. Li has lived in several countries, including China, Cambodia, and the United Arab Emirates. He was involved in a scheme that directed illicit funds obtained from victims of cryptocurrency fraud.
Court papers showed that Li and others engaged in money laundering of cash from victims of cryptocurrency fraud. They said his duties were to inform other members of the conspiracy to open bank accounts in the United States under the names of fictitious companies. As a result, domestic and international wire transfers made these transfers before converting the money into USDT, a stablecoin.
U.S. Agencies Crack Down on $73.6 Million Crypto Fraud Operation
As the investigators stated, over $73.6 million of the illicit money went through the accounts of Li and his crime partners. As a result, over $59 million was transferred through shell companies registered in the United States. U.S. Attorney Martin Estrada emphasized the significant impact of financial criminals on investors. Consequently, he urged caution with programs that promise quick, high returns.
It also argues that cross-border cooperation is ideal for tackling sophisticated financial crimes. According to Justice Department senior official Nicole M. Argentieri, Li’s attempt to avoid justice due to cross-border operations would not be fruitful.
Li was said to have been arrested in April at Atlanta’s Hartsfield-Jackson International Airport before being moved to Los Angeles. He is expected to get a maximum of 20 years in federal prison, and the sentencing hearing is set for March 2025.
Ultimately, this case highlights the growing threats of fraudsters operating within the cryptocurrency space. It also emphasizes the global challenge of tracking and prosecuting cyber criminals, regardless of their location.
