Daren Li, a 41-year-old dual citizen of China and St. Kitts and Nevis, has pleaded guilty to conspiracy charges for his role in a scheme that laundered more than $73 million in proceeds from cryptocurrency investment scams. The money was funneled through a network of shell companies and international bank accounts, reaching U.S. victims in a global web of fraud.
Li, who lived in multiple countries including China, Cambodia, and the United Arab Emirates, was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport and transported to California to face charges. According to court documents, he worked with co-conspirators to disguise the origins of funds obtained from victims through cryptocurrency scams. The group used encrypted messaging services to communicate and set up fraudulent U.S. bank accounts under fake companies to conceal the transactions.
“Li and his co-conspirators laundered over $73 million from the victims of cryptocurrency investment scams,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri. “Although Li operated from outside the U.S., he was not beyond our reach. This plea reflects our commitment to holding those responsible for cryptocurrency fraud accountable, no matter where they are.”
Li’s role in the operation involved overseeing and executing the laundering process. He would direct his co-conspirators to open U.S.-based bank accounts under shell company names, then monitored the receipt of funds through both domestic and international wire transfers. The fraudulently obtained funds were converted into Tether (USDT), a cryptocurrency tied to the U.S. dollar, and funneled into wallets controlled by Li and his accomplices.
The illicit network also included at least $59.8 million in victim funds deposited into accounts associated with U.S.-based shell companies. Li personally oversaw the conversion and distribution of these funds into cryptocurrency, effectively moving the stolen money through multiple financial channels to obscure its origins.
“Financial criminals and the money launderers who enable them wreak untold harm, ruining lives in the process,” said United States Attorney Martin Estrada. “This case serves as a reminder for investors to remain vigilant and cautious when considering investment opportunities, particularly in the cryptocurrency space.”
The investigation was a joint effort involving U.S. law enforcement agencies and international partners, highlighting the need for global collaboration in tackling transnational financial crimes. “This investigation demonstrates how domestic and international partnerships are vital to successfully combatting transnational crime,” said Acting Assistant Director of Investigations Michael Ball of the U.S. Secret Service.
Li faces up to 20 years in prison for his role in the conspiracy. His sentencing is scheduled for March 3, 2025, and a federal judge will determine his sentence based on the U.S. Sentencing Guidelines and other relevant factors.
