Daren Li, 41, a twin citizen of China and St. Kitts and Nevis, and a resident of China, Cambodia, and the United Arab Emirates, pleaded responsible at this time to 1 rely of conspiracy to commit cash laundering for his position in a scheme to launder tens of millions of {dollars} in proceeds of cryptocurrency funding scams.
“Daren Li and his co-conspirators laundered over $73 million from the victims of cryptocurrency funding scams, utilizing an internet of shell firms and worldwide financial institution accounts,” as per a report by the US Justice Division’s Felony Division.
“Though Li dedicated this offense from exterior america, he was not past the attain of the Justice Division. Right now’s plea displays our ongoing dedication to working with our home and worldwide companions to carry accountable anybody answerable for cryptocurrency funding fraud towards U.S. victims — wherever the perpetrators are positioned.”
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Li was arrested on April 12 at Hartsfield-Jackson Atlanta Worldwide Airport and subsequently transported to the Central District of California.
In keeping with courtroom paperwork, Li admitted that he conspired with others to launder funds obtained from victims via cryptocurrency scams and associated fraud.
In furtherance of the conspiracy, he communicated along with his co-conspirators via encrypted messaging providers.
To hide or disguise the character, location, supply, possession, and management of the fraudulently obtained sufferer funds, Li would instruct co-conspirators to open U.S. financial institution accounts established on behalf of shell firms and would monitor the receipt and execution of interstate and worldwide wire transfers of sufferer funds.
Li and different co-conspirators would obtain sufferer funds in monetary accounts they managed, after which monitor the conversion of sufferer funds to digital forex, particularly Tether (USDT), and the next distribution of that digital forex to cryptocurrency wallets managed by Li and his co-conspirators.
Li admitted that at the least $73.6 million in sufferer funds have been straight deposited into financial institution accounts related to him and his co-conspirators, together with at the least $59.8 million deposited from U.S. shell firms that laundered sufferer proceeds.
“Monetary criminals and the cash launderers who allow them wreak untold hurt, ruining lives within the course of,” mentioned United States Lawyer Martin Estrada for the Central District of California. “Traders needs to be diligent and on guard towards anybody providing fast riches through new, unique investments. A wholesome dose of skepticism might forestall monetary destroy down the highway.”
“This investigation demonstrates how home and worldwide partnerships are important to efficiently combatting transnational crime,” mentioned Performing Assistant Director of Investigations Michael Ball of the U.S. Secret Service (USSS).
Li is scheduled to be sentenced on March 3, 2025. Li faces a most penalty of 20 years in jail.
A federal district courtroom choose will decide any sentence after contemplating the U.S. Sentencing Tips and different statutory components. USSS’s International Investigative Operations Middle is investigating the case.
Homeland Safety Investigations’ El Camino Actual Monetary Crimes Activity Pressure, Customs and Border Safety’s Nationwide Concentrating on Middle, the Dominican Republic Nationwide Drug Directorate Delicate Investigative Unit and Fugitive Activity Pressure, U.S. Marshals Service, Drug Enforcement Administration, and Justice Division’s Workplace of Worldwide Affairs assisted.
Trial Lawyer Stefanie Schwartz of the Felony Division’s Pc Crime and Mental Property Part’s Nationwide Cryptocurrency Enforcement Staff and Assistant U.S. Attorneys Maxwell Coll and Nisha Chandran for the Central District of California are prosecuting the case.
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