A Chinese dual citizen pleaded guilty for his role in helping launder $73 million stolen through various crypto scams.
Daren Li, 41, pleaded guilty to one count of conspiracy to commit money laundering for his role in the scheme, which prosecutors said raked in millions through crypto investment scams, including pig butchering, from around August 2021 to April 12, 2024, according to a plea agreement filed on Nov. 11 in a California federal court.
Li admitted he instructed others to open United States-based bank accounts under shell companies to “conceal or disguise the nature, location, source, ownership” of the funds, the filing said.
After victims transferred millions of dollars into the accounts, the funds were ultimately converted into Tether USDT
$1.00 and distributed to wallets controlled by Li and his co-conspirators.
One of the wallets involved in the scheme had received more than $341 million in digital assets, according to court documents.
Head of the Justice Department’s Criminal Division, Nicole M. Argentieri, said in a Nov. 12 statement that Li committed this offense outside the US, using “a web of shell companies and international bank accounts.”
Li admitted that $73.6 million in stolen funds was directly deposited into bank accounts associated with the scheme, and at least $59.8 million was deposited from US shell companies that helped launder the proceeds.
He was arrested at Atlanta airport in Georgia on April 12, while his alleged co-conspirator, Yicheng Zhang, was arrested in Los Angeles on May 16.
After Li pleaded guilty, Judge R. Gary Klausner scheduled a sentencing hearing for him on March 3, 2025.
He is facing a maximum sentence of 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the gross resulting from the offense, whichever is larger.
As part of the sentencing, prosecutors also flagged the possibility he might be “required to pay full restitution to the victims,” which could be between $4.5 million and $73 million.
