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US Court Sentences Crypto Scammer to 20 Years for $73 Million Fraud

US Court Sentences Crypto Scammer to 20 Years for $73 Million Fraud

US Court Sentences Crypto Scammer to 20 Years for $73 Million Fraud 🚨

A Chinese national has been sentenced to two decades behind bars for his involvement in a global crypto-investment fraud scheme that cost victims over $73 million. Daren Li, 42, a dual national of China and the Caribbean state of St. Kitts and Nevis, was sentenced by a Californian court in absentia after cutting off his electronic tag and disappearing in December 2025.

In November 2024, Li pleaded guilty to conspiring with others to launder funds obtained from victims through cryptocurrency scams. He admitted to tricking victims into depositing at least $73.6 million into bank accounts controlled by himself and his co-conspirators. An estimated $59.8 million was funneled into accounts associated with U.S. shell companies that laundered the proceeds.

Li directed his co-conspirators to open U.S. bank accounts established by these fake companies to mislead investigators. They collectively monitored the wire transfers and conversion of victim funds to cryptocurrency.

The operation included a typical romance baiting scheme, where victims were contacted through unsolicited approaches on social media, online dating sites, and cold calls. Over time, the scammers gained their trust, sometimes by engaging in romantic relationships. When the moment was right, they directed victims to invest in cryptocurrency trading platforms using spoofed websites to enhance legitimacy.

In some cases, scammers posed as representatives of tech support companies, tricking victims into sending funds via wire transfer or to crypto trading platforms to resolve non-existent computer issues.

So far, eight co-conspirators have pleaded guilty, but Li is the first to be sentenced for directly receiving victim funds.

“While technology has made it easier for people to communicate across oceans, it has also made it simpler for criminals to prey on innocent victims,” said first assistant U.S. attorney Bill Essayli. A UN report from 2025 warned that cyber-enabled fraud operations are expanding on an industrial scale in Southeast Asia, particularly in vulnerable border areas of Myanmar and Cambodia.

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