WASHINGTON DC– The United States Department of Justice (DOJ) says a dual citizen of China and St Kitts Nevis, along with persons from China, Cambodia, and the United Arab Emirates, pleaded guilty to one count of conspiracy to commit money laundering for his role in a scheme to launder millions of dollars in proceeds of cryptocurrency investment scams.
Daren Li, 41, and his co-conspirators laundered over US$73 million from the victims of cryptocurrency investment scams, using a web of shell companies and international bank accounts.
“Although Li committed this offence from outside the United States, he was not beyond the reach of the Justice Department,” said Principal Deputy Assistant Attorney General Nicole M Argentieri, head of the Justice Department’s Criminal Division, on Tuesday.
“Today’s plea reflects our ongoing commitment to working with our domestic and international partners to hold accountable anyone responsible for cryptocurrency investment fraud against US victims — wherever the perpetrators are located,” she added.
Li was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport and subsequently transported to the Central District of California.
According to court documents, Li admitted that he conspired with others to launder funds obtained from victims through cryptocurrency scams and related fraud.
“In furtherance of the conspiracy, he communicated with his co-conspirators through encrypted messaging services,” the DOJ said.
In order to conceal or disguise the nature, location, source, ownership and control of the fraudulently obtained victim funds, the DOJ said Li would instruct co-conspirators to open US bank accounts established on behalf of shell companies and would monitor the receipt and execution of interstate and international wire transfers of victim funds.
“Li and other co-conspirators would receive victim funds in financial accounts they controlled, and then monitor the conversion of victim funds to virtual currency, specifically Tether (USDT), and the subsequent distribution of that virtual currency to cryptocurrency wallets controlled by Li and his co-conspirators,” the DOJ said.
It said Li admitted that at least US$73.6 million in victim funds were directly deposited into bank accounts associated with him and his co-conspirators, including at least US$59.8 million deposited from US shell companies that laundered victim proceeds.
“Financial criminals and the money launderers who enable them wreak untold harm, ruining lives in the process,” said United States Attorney Martin Estrada for the Central District of California. “Investors should be diligent and on guard against anyone offering quick riches via new, exotic investments. A healthy dose of scepticism could prevent financial ruin down the road.”
Acting Assistant Director of Investigations Michael Ball of the US Secret Service (USSS) said: “This investigation demonstrates how domestic and international partnerships are vital to successfully combatting transnational crime.”
The DOJ said Li is scheduled to be sentenced on March 3, 2025, and faces a maximum penalty of 20 years in prison. (CMC)
