Bitrabo Editorial
Authorities in the United States have pressed charges against two foreign nationals for their involvement in laundering $73 million through cryptocurrency investment scams, also known as “pig butchering.” The US Department of Justice (DOJ) disclosed this development on Friday, revealing an indictment in the Central District of California targeting the two suspects.
Details of the $73 Million Crypto Laundering Operation
In an official statement, the DOJ identified the accused in the cryptocurrency laundering case as Daren Li and Yicheng Zhang, both Chinese nationals aged 42 and 38, respectively. Li, who holds dual citizenship in China and St. Kitts and Nevis, was taken into custody on April 12 at Hartsfield-Jackson Atlanta International Airport and then transferred to California’s Central District. Zhang was apprehended in Los Angeles on Thursday.
The pair is alleged to have played a role in a scam where unsuspecting victims are encouraged to invest significant amounts in fake cryptocurrency schemes. Once the investment reaches substantial levels, the scammers vanish with the funds, leaving the victims facing substantial losses.
Court records indicate that Li and Zhang operated an international network that laundered the proceeds from these crypto scams. Victims are deceived into transferring large sums to US bank accounts under the control of shell companies. Subsequently, these funds are funneled to domestic and international accounts, as well as crypto exchanges, in an attempt to obfuscate the origin and transaction history of these illicit gains.
Over $73 million has already been funneled into shell accounts at Deltec Bank in The Bahamas, where it was converted into Tether (USDT). Furthermore, a cryptocurrency wallet received more than $341 million in virtual assets as part of this fraudulent operation.
Deputy Attorney General Lisa Monaco remarked on the case, stating that cryptocurrency investment scams exploit the borderless nature of virtual currency and online communications to defraud victims. Monaco emphasized the Justice Department’s dedication to disrupting cybercrime and thwarting fraud across financial markets with the help of international and US partners.
Li and Zhang are currently facing charges of conspiracy to commit money laundering and six counts of international money laundering. If convicted, they could each face a maximum penalty of up to 20 years in prison per count.
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