Real Estate Developer Loses $3.6 Million in International Crypto Scam

On Tuesday, March 5, 2024, Phillip Li, a real estate developer from New York, filed a federal lawsuit alleging that he lost over $3.6 million to an international crypto scam.

The complaint, filed in the Southern District of Texas by Li’s attorney Marshal Hoda, names one individual – Annie, whose real name is unknown – and twenty unnamed individuals, businesses, and entities as defendants. According to the suit, Annie approached Li over WeChat in July 2023 claiming to have found success investing in cryptocurrency through a trading platform called WDCEX.PRO.

Over several months, Annie encouraged Li to open an account and make deposits on the platform, assuring him he could profit through her alleged expertise in artificial intelligence-powered trading. However, the lawsuit states that WDCEX was never a legitimate trading site and no actual investments were made. It claims the site was just designed to imitate a functioning platform in order to deceive victims like Li.

The suit alleges that on Annie’s instructions, Li wired a total of $3.65 million in thirty-two separate transactions to bank accounts in Hong Kong provided by WDCEX customer service. His fake account statements showed balances increasing into the tens of millions. But when Li attempted to make a withdrawal, WDCEX told him he needed to first pay “taxes” and “fees.” It was then that Li realized he had been the victim of an elaborate scam.

According to the complaint, the so-called “pig butchering” scam employed against Li is part of a global criminal enterprise that has defrauded victims out of over $75 billion since 2020.

The lawsuit asserts claims under the Racketeer Influenced and Corrupt Organizations (RICO) Act as well as for conversion and seeks the return of all stolen funds plus treble damages. It also asks the court to impose a constructive trust over any assets determined to be wrongfully taken from Li. Only time will tell if Li sees any of the millions returned as one of the thousands conned in these complex international crypto scams.

Please contact BlockTribune for access to a copy of this filing.