How a Global Crypto Scam Ended With a 20-Year Sentence for a Man on the Run
A US federal courtroom has sentenced a fugitive to the most statutory jail time period for his function in a $73 million crypto fraud operation that focused victims by way of pretend funding platforms and on-line deception.
This case illustrates the rising threat of transnational crypto fraud. Scams like these have prompted US authorities to accentuate investigations and enforcement concentrating on worldwide money-laundering operations.
The Anatomy of a $73 Million Crypto Scam Operation
According to the Department of Justice, Daren Li, a twin nationwide of China and St. Kitts and Nevis, performed a key function in an international cryptocurrency investment rip-off. It operated out of rip-off facilities in Cambodia.
The operation relied on social engineering, fake trading platforms, and cash laundering networks to steal funds from victims in the US. Prosecutors stated unindicted members of the conspiracy contacted victims through unsolicited social media messages, telephone calls, and on-line courting providers.
After constructing belief by way of skilled or romantic relationships, typically utilizing end-to-end encrypted messaging apps, the scammers directed victims to spoofed web sites designed to resemble official cryptocurrency buying and selling platforms.
“While know-how has made it potential for folks to shortly talk with others who reside oceans away, it additionally has made it simpler for criminals to prey on harmless victims,” First Assistant US Attorney Bill Essayli for the Central District of California stated.
In different variations of the scheme, scammers informed victims that they had been representatives of buyer assist or tech service firms. They then pressured victims into sending funds by way of wire transfers or cryptocurrency platforms to resolve pretend laptop points or non-existent safety threats.
From Arrest to Escape: The Fugitive’s Flight
Li was arrested in April 2024 at Hartsfield-Jackson Atlanta International Airport. He pleaded responsible on November 12, 2024, to conspiring to launder proceeds from cryptocurrency scams and associated fraud.
As a part of his plea settlement, he admitted that at the very least $73.6 million in sufferer funds was deposited into financial institution accounts managed by him and his co-conspirators. Of that whole, at the very least $59.8 million flowed by way of US shell firms used to launder the proceeds.
Li additionally revealed that he directed others to open US financial institution accounts for shell firms, monitored worldwide and home wire transfers, and oversaw the conversion of stolen funds into cryptocurrency to obscure their origin and possession.
Prosecutors stated Li is the first defendant in the case to be sentenced at that degree of involvement. Eight co-conspirators have already pleaded responsible.
However, earlier than sentencing, Li fled. Prosecutors stated he minimize off his digital ankle monitoring gadget in December 2025 and absconded. He stays a fugitive.
Despite his disappearance, the courtroom proceeded with sentencing. On February 9, 2026, a federal decide sentenced Li to the statutory most of 20 years in jail. This can be adopted by three years of supervised launch.
“The Criminal Division will work with our legislation enforcement companions round the world to make sure that Li is returned to the United States to serve his full sentence,” stated Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.
The sentencing marks the newest transfer in a broader Justice Department crackdown on world rip-off facilities and crypto-related fraud. Last month, BeInCrypto reported that a US courtroom sentenced a Chinese nationwide to just about 4 years in jail. The courtroom additionally ordered him to pay greater than $26 million in restitution for his involvement in a $36.9 million crypto rip-off.
The publish How a Global Crypto Scam Ended With a 20-Year Sentence for a Man on the Run appeared first on BeInCrypto.
