Chinese citizen Daren Li has pleaded guilty to being involved in laundering $73 million acquired through various cryptocurrency scams.
Guilty Plea and Case Details
Daren Li, 41, admitted guilt to one count of conspiracy to commit money laundering in connection with a scheme that generated millions from crypto investment scams, including 'pig butchering,' between August 2021 and April 12, 2024, as outlined in a Nov. 11 plea agreement filed in a California federal court.
Money Laundering Methods
Li acknowledged directing others to open U.S.-based bank accounts under shell companies to 'conceal or disguise the nature, location, source, and ownership' of the funds, according to court documents. Once victims transferred millions into these accounts, the funds were converted into Tether (USDT) and sent to wallets under the control of Li and his associates. Court records reveal that one of the wallets involved received over $341 million in digital assets.
Arrest and Possible Consequences
Li was arrested at Atlanta’s airport on April 12, while his alleged co-conspirator, Yicheng Zhang, was detained in Los Angeles on May 16. Following his guilty plea, Judge R. Gary Klausner scheduled Li’s sentencing for March 3, 2025. Li could face up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the total gain from the offense, whichever is greater. Prosecutors have also suggested that he may be 'required to pay full restitution to the victims,' which could range from $4.5 million to $73 million.
Daren Li's guilty plea in significant money laundering highlights the seriousness of cryptocurrency crimes and international cooperation in tackling them.
