Blockchain Analysis of a Money Laundering Scenario Linked to Daren Li

A recent indictment in the Central District of California has revealed disturbing details about Daren Li's alleged involvement in a vast money laundering conspiracy. Li was accused of spearheading the illicit syndicate behind 'pig-butchering' scams, which utilized fraudulent CoinZoom and Crypto.Com versions to persuade unsuspecting individuals to transfer their funds.

Victims were tricked into sending money to bank accounts held by shell corporations, including entities like CMD Export and Import. The investigation uncovered two accounts in a Bahamian bank, one of which was initiated by Li's co-conspirators in Los Angeles, backed by financial contributions from Li himself. Moreover, approximately $35.4 million from scam victims was funneled into a USDT account and later transferred to Li's Binance account.

The syndicate extended its operations to other banks, such as Evolve Bank and Trust, where another shell corporation, Jingshun International Corporation, controlled the account. Funds held at Evolve were subsequently moved to Wise, showcasing the intricate network of financial transactions.

Additionally, the indictment highlighted previous cases involving co-conspirators and the movement of illicit funds through accounts at Deltec Bank and Mitsubishi UFJ (MUFJ) Trust and Banking Corporation. The affidavit also pointed to potential misrepresentations made by Deltec Bank regarding the purpose of certain accounts to MUFJ.

The blockchain analysis shed light on the flow of funds from Li's Binance account to a specific address referred to as the 'TRteo Address,' providing further insight into the syndicate's dealings with prominent exchanges like Binance, FTX, and Kraken. The investigation identified transactions totaling millions of dollars in USDT, underscoring the complex nature of money laundering activities within the cryptocurrency ecosystem.

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