Foreign National Pleads Guilty to Laundering Millions from Crypto Scams
On Tuesday, November 12, 2024, the Department of Justice’s Office of Public Affairs announced that Daren Li, a 41-year-old dual citizen of China and St. Kitts and Nevis, pleaded guilty to conspiracy to commit money laundering. This plea is connected to his involvement in laundering millions of dollars derived from cryptocurrency investment scams.
Li, who resides in China, Cambodia, and the United Arab Emirates, acknowledged his role in a scheme that facilitated the laundering of over $73 million taken from victims of these scams. Principal Deputy Assistant Attorney General Nicole M. Argentieri emphasized the Justice Department’s commitment to holding accountable those involved in cryptocurrency fraud, regardless of their location.
The case against Li began with his arrest on April 12 at Hartsfield-Jackson Atlanta International Airport, following which he was transferred to the Central District of California for prosecution. Court documents reveal that Li conspired with others to hide the origins of funds obtained through fraudulent cryptocurrency schemes. He utilized encrypted messaging platforms to coordinate with his co-conspirators.
To obscure the nature and source of the illicit funds, Li instructed his associates to establish U.S. bank accounts linked to shell companies. He oversaw the receipt and transfer of victim funds through both interstate and international wire transfers. Li and his co-conspirators reportedly received these funds in accounts they controlled, then converted them into virtual currency, specifically Tether (USDT), before distributing the currency to wallets under their control.
Li admitted that approximately $73.6 million in victim funds were deposited into bank accounts connected to him and his collaborators. Notably, around $59.8 million of this amount was funneled through U.S. shell companies that were part of the laundering process.
U.S. Attorney Martin Estrada for the Central District of California highlighted the detrimental impact of financial crimes, urging investors to remain vigilant against offers of quick financial gains through unconventional investment opportunities. He warned that a cautious approach could help prevent significant financial losses.
The investigation into this case underscores the importance of international cooperation in tackling transnational crime, as noted by Acting Assistant Director of Investigations Michael Ball from the U.S. Secret Service.
Li is scheduled for sentencing on March 3, 2025, where he faces a maximum penalty of 20 years in prison. The final sentence will be determined by a federal district court judge, who will consider the U.S. Sentencing Guidelines along with other relevant factors.
