Vanessa
Key Points
- According to court documents, Li, 41, admitted to conspiring with others to move victim funds through a network of shell companies and international bank accounts
- Using encrypted messaging to coordinate with co-conspirators, Li orchestrated the setup of U
- bank accounts on behalf of shell companies to facilitate the transfer and conversion of illicit funds into cryptocurrency, specifically Tether (USDT)
Daren Li, a dual citizen of China and St. Kitts and Nevis, has pleaded guilty to a charge of conspiracy to commit money laundering for his role in a scheme that laundered over $73 million in proceeds from cryptocurrency investment scams targeting U.S. victims.
According to court documents, Li, 41, admitted to conspiring with others to move victim funds through a network of shell companies and international bank accounts. Using encrypted messaging to coordinate with co-conspirators, Li orchestrated the setup of U.S. bank accounts on behalf of shell companies to facilitate the transfer and conversion of illicit funds into cryptocurrency, specifically Tether (USDT). These funds were then funneled into crypto wallets controlled by Li and his associates.
Li was arrested in April at Hartsfield-Jackson Atlanta International Airport. “Although Li committed this offense from outside the United States, he was not beyond the reach of the Justice Department,” said Nicole M. Argentieri, Principal Deputy Assistant Attorney General.
Related: Employee Suspended at Binance Over Alleged Insider Trading Activity
U.S. Attorney Martin Estrada for the Central District of California warned investors to exercise caution, stating, “Investors should be diligent and on guard against anyone offering quick riches via new, exotic investments.”
The U.S. Secret Service’s Global Investigative Operations Center is leading the investigation, with assistance from multiple international and federal agencies. Daren Li is scheduled for sentencing on March 3, 2025, and faces a potential maximum sentence of 20 years in prison.
Related: Michael Saylor’s Bitcoin Strategy Backfires as 100+ Companies Tank
The case comes amid heightened scrutiny of cryptocurrency-related fraud. In another recent development, a New York court denied former Celsius Network CEO Alex Mashinsky’s motion to dismiss fraud charges related to alleged price manipulation and investor deception, reflecting a broader crackdown on crypto scams and financial misconduct.
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