A 41-year-old dual citizen of China and St. Kitts and Nevis, Daren Li has pleaded guilty to conspiracy to commit money laundering in millions under crypto investments.
Li, who resided in China, Cambodia, and the United Arab Emirates, was involved in a scheme that laundered over $73 million from victims of cryptocurrency investment scams.
The U.S. Department of Justice announced that Li was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport and subsequently transported to the Central District of California.
His guilty plea marks a crucial step in the ongoing efforts to combat international financial crimes involving cryptocurrencies.
According to court documents, Li admitted to conspiring with others to launder funds obtained through cryptocurrency scams and related fraud.
The operation involved a complex network of shell companies and international bank accounts, with Li instructing co-conspirators to open U.S. bank accounts on behalf of these shell entities.
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The scheme’s modus operandi included monitoring interstate and international wire transfers of victim funds, converting these funds into Tether (USDT), and distributing the virtual currency to cryptocurrency wallets controlled by Li and his co-conspirators.
At least $73.6 million in victim funds were directly deposited into bank accounts associated with the operation, including $59.8 million from U.S. shell companies.
Principal Deputy Assistant Attorney General Nicole M. Argentieri emphasized the Justice Department’s commitment to holding accountable those responsible for cryptocurrency investment fraud against U.S. victims, regardless of their location.
United States Attorney Martin Estrada for the Central District of California warned investors to be diligent and skeptical of offers promising quick riches through new, exotic investments.
The case, investigated by the U.S. Secret Service’s Global Investigative Operations Center, highlights the importance of international cooperation in combating transnational financial crimes. Li faces a maximum penalty of 20 years in prison, with sentencing scheduled for March 3, 2025.
This case serves as a stark reminder of the risks associated with cryptocurrency investments and the sophisticated methods employed by criminals to exploit unsuspecting victims. As cryptocurrencies continue to gain popularity, law enforcement agencies worldwide are intensifying their efforts to crack down on related financial crimes and protect investors.
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