Chinese Man Sentenced to 20 Years: $73 Million Crypto Fraud

A United States federal court has sentenced a dual national of China and St. Kitts and Nevis to the maximum term of 20 years in prison for his role in a global cryptocurrency investment scam that targeted American victims. 

The case highlights the growing scale of cross border crypto fraud and the increasing efforts by US authorities to pursue perpetrators operating from overseas scam centres.

Key Takeaways

• A dual Chinese national was sentenced to 20 years for laundering over $73 million in crypto fraud proceeds
• The scam targeted US victims through fake investment platforms and social engineering tactics
• US authorities are intensifying efforts to disrupt international crypto scam networks

Trade with confidence. Bitrue is a secure and trusted crypto trading platform for buying, selling, and trading Bitcoin and altcoins.

Register Now to Claim Your Prize!

Details of the $73 Million Cryptocurrency Fraud Case

The defendant, Daren Li, aged 42, was sentenced in absentia in the Central District of California after cutting off his electronic monitoring device and fleeing in December 2025. 

According to the US Department of Justice, Li played a central role in laundering funds obtained through an international cryptocurrency investment conspiracy operated from scam centres in Cambodia.

Li pleaded guilty in November 2024 to conspiring to launder money derived from cryptocurrency scams and related fraud. Court records show that he and his co conspirators targeted victims through unsolicited messages on social media, phone calls, and online dating platforms. 

These interactions were designed to build trust by creating either professional or romantic relationships with victims.

Once trust was established, victims were directed to spoofed websites that closely resembled legitimate cryptocurrency trading platforms. 

In other cases, victims were deceived into believing they were dealing with customer support or technology service representatives and were instructed to send funds to resolve fabricated computer issues. 

In total, investigators confirmed that at least $73.6 million in victim funds were deposited into accounts controlled by Li and his network.

US authorities described the financial and emotional impact on victims as severe, with losses spanning multiple states and affecting individuals across the country.

Read also: AI Powers $14 Billion Crypto Fraud Industry Over Last Year

How the Scam Network Laundered Victim Funds

Court documents reveal that Li was directly involved in the movement and concealment of stolen funds. 

He directed co conspirators to establish US based shell companies and open bank accounts used to receive wire transfers from victims. These funds were then monitored, moved, and converted into virtual currencies to obscure their origin.

At least $59.8 million of the stolen funds passed through US shell companies linked to the conspiracy. 

Li admitted to overseeing the receipt of interstate and international wire transfers and coordinating the conversion of these proceeds into cryptocurrency. This structure allowed the scam network to operate at scale while attempting to evade detection.

So far, eight co conspirators have pleaded guilty, making Li the first defendant directly responsible for receiving victim funds to be sentenced. 

The case is being investigated by multiple agencies, including the US Secret Service Global Investigative Operations Center, Homeland Security Investigations, and international law enforcement partners.

Authorities stressed that the sentencing reflects a broader strategy to dismantle scam centre operations by targeting their financial infrastructure and seizing illicit digital assets.

Read also: Crypto Fraud Worth Over $530000 in Vietnam

What This Case Means for Crypto Users and How to Trade Safely

Before engaging in any crypto activity, users should understand that fraud cases like this often rely on impersonation and fake platforms rather than flaws in blockchain technology itself. Choosing reputable trading venues remains one of the most effective ways to reduce risk.

1. Use regulated and established platforms with transparent compliance practices
2. Avoid unsolicited investment offers or requests for funds
3. Never send crypto or wire transfers to unknown parties
4. Verify websites and domains carefully before connecting wallets

Platforms like Bitrue provide clearer trading environments with standardised processes, which can help users avoid the types of spoofed platforms used in this case.

Read also: AI-Generated Crypto Scams Explained: How to Spot Them 

Conclusion

The sentencing of Daren Li to 20 years in prison marks one of the most significant outcomes in recent US cryptocurrency fraud prosecutions. 

The case demonstrates how international scam networks exploit trust and technology to target victims at scale, while also showing that US authorities are increasingly willing to pursue perpetrators across borders. 

For everyday crypto users, the lesson is clear. Vigilance, scepticism toward unsolicited offers, and the use of established trading platforms like Bitrue remain essential for safer participation in the digital asset space.

FAQ

Who is Daren Li?

Daren Li is a dual national of China and St. Kitts and Nevis who pleaded guilty to laundering proceeds from a global cryptocurrency investment scam.

How much money was stolen in the scam?

Investigators confirmed that at least $73.6 million in victim funds were laundered through the conspiracy.

Where did the scam operations take place?

The scam centres were operated primarily from Cambodia, targeting victims in the United States.

Why was Li sentenced in absentia?

Li fled in December 2025 after cutting off his electronic monitoring device, making him a fugitive at the time of sentencing.

How can crypto users avoid similar scams?

Users should avoid unsolicited investment offers, verify platforms carefully, and use established exchanges with clear compliance standards.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.