A Chinese citizen associated with the operation of cryptocurrency-related scams has acknowledged his role in laundering millions of dollars. Daren Li, a 41-year-old from Shaanxi province in China, managed the transfer of over $73 million from victims to wallets under his control and those of his associates. He is scheduled to be sentenced on March 3, where he faces a potential maximum penalty of 20 years in prison.

Li was apprehended on April 12 at the Hartsfield-Jackson Atlanta International Airport. The U.S. Department of Justice (DOJ) indicated that he resided in various countries, including China, Cambodia, and the UAE. One of his co-conspirators, Yicheng Zhang, aged 38, was detained in California on May 16.

"Although Li carried out this crime from abroad, he is still liable to the U.S. Justice Department," said Nicole M. Argentieri, the DOJ's criminal division head. "This plea underscores our ongoing commitment to combating fraudulent activities targeting U.S. investors."

In recent reports, it was revealed that losses from cryptocurrency scams reached $4.5 billion in 2023. One prevalent scam method is known as "pig butchering," which sharply draws in victims by creating an illusion of trust before enticing them to invest, ultimately preventing withdrawals once larger sums are deposited.

Li's laundering methods included the establishment of shell companies and the transfer of funds through various bank accounts, including to a bank in the Bahamas. Recent investigations resulted in the seizure of over $58 million in funds from that institution connected to his activities.