- Trending
- Comments
- Latest
A federal judge sentenced Daren Li to 20 years in prison for his role in laundering approximately $73 million stolen through cryptocurrency investment scams, even as the convicted money launderer remains a fugitive after fleeing U.S. supervision in late 2025.
The sentence, handed down in the U.S. District Court for the Central District of California, targets Daren Li, a dual citizen of China and St. Kitts and Nevis.
Federal prosecutors said Li played a key role in laundering proceeds from a crypto investment scam that defrauded victims worldwide of approximately $73 million.
Li was sentenced in absentia after fleeing U.S. supervision in late 2025 by removing his electronic ankle monitor, according to court records.
Despite his absence, the court proceeded with sentencing, signaling that flight would not delay accountability in a crypto investment scam of this magnitude.
Li pleaded guilty in November 2024 to conspiracy to commit money laundering, admitting that he helped move funds stolen through overseas scam centers, many operating out of Cambodia.
“The defendant admitted his role in laundering fraud proceeds tied to overseas scam operations,” — the U.S. Department of Justice said in court filings.
Federal authorities said efforts are ongoing to locate Li and return him to the United States to serve the sentence.
According to prosecutors, the crypto investment scam relied on unsolicited contact through social media and messaging applications.
Victims were gradually drawn into fabricated personal relationships before being directed to sophisticated but fake cryptocurrency trading platforms.
Once victims deposited funds, the platforms displayed fabricated profits to encourage additional investments.
When victims attempted to withdraw funds, access was blocked, and communication ceased.
“These schemes build trust slowly and then drain victims through staged profits and false platforms,” — an FBI official familiar with the investigation said.
Prosecutors said Li and his co-conspirators laundered stolen funds through shell companies and U.S. bank accounts before converting them into cryptocurrency.
At least $59.8 million in victim funds flowed through U.S.-based financial institutions, establishing federal jurisdiction.
The sentencing marks a milestone in the Justice Department’s broader campaign against “pig butchering” fraud, a term used by law enforcement to describe long-term grooming tactics followed by large-scale financial exploitation.
Eight co-conspirators have already pleaded guilty in related cases. Officials said Li is the first individual directly involved in receiving and laundering stolen proceeds to be sentenced.
“Those who launder stolen funds are not peripheral actors; they are central to the fraud,” — an Assistant U.S. Attorney involved in the case said during court proceedings.
The Justice Department said the case reflects an expanding strategy focused not only on scammers but also on facilitators who move and conceal illicit proceeds through cryptocurrency channels.
For investors, the sentencing highlights the growing legal risks facing global fraud networks that rely on cryptocurrency infrastructure.
While asset recovery remains challenging due to cross-border laundering, prosecutors said the outcome strengthens deterrence and signals sustained enforcement.
Authorities continue to urge the public to scrutinize unsolicited investment offers, independently verify trading platforms, and avoid pressure to move funds quickly.
As regulators and law enforcement deepen cooperation with banks and crypto platforms, officials say disrupting the crypto investment scam ecosystem remains a priority to protect consumers from increasingly sophisticated online fraud.
