A Chinese dual citizen has pleaded guilty to laundering millions of dollars in proceeds of cryptocurrency investment scams.
Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, and a resident of China, Cambodia, and the United Arab Emirates, pleaded guilty to one count of conspiracy to commit money laundering on Tuesday in the Central District of California.
“Daren Li and his co-conspirators laundered over $73 million from the victims of cryptocurrency investment scams, using a web of shell companies and international bank accounts,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division.
Argentieri added, “Although Li committed this offense from outside the United States, he was not beyond the reach of the Justice Department. Today’s plea reflects our ongoing commitment to working with our domestic and international partners to hold accountable anyone responsible for cryptocurrency investment fraud against U.S. victims — wherever the perpetrators are located.”
According to a press release from the Justice Department, Li was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport.
The press release explained, “In order to conceal or disguise the nature, location, source, ownership, and control of the fraudulently obtained victim funds, Li would instruct co-conspirators to open U.S. bank accounts established on behalf of shell companies and would monitor the receipt and execution of interstate and international wire transfers of victim funds. Li and other co-conspirators would receive victim funds in financial accounts they controlled, and then monitor the conversion of victim funds to virtual currency, specifically Tether (USDT), and the subsequent distribution of that virtual currency to cryptocurrency wallets controlled by Li and his co-conspirators.”
Li deposited at least $73.6 million of the victim’s money into bank accounts belonging to him and his co-conspirators. At least $59.8 million was from shell companies in the United States.
“Financial criminals and the money launderers who enable them wreak untold harm, ruining lives in the process,” said United States Attorney Martin Estrada for the Central District of California. “Investors should be diligent and on guard against anyone offering quick riches via new, exotic investments. A healthy dose of skepticism could prevent financial ruin down the road.”
Li is scheduled to be sentenced on March 3, 2025.
He faces a maximum sentence of 20 years in prison.
