Daren Li, a 41-year-old dual citizen of China and St. Kitts and Nevis, has admitted to his role in a major money laundering scheme involving cryptocurrency investment scams. Li, a resident across China, Cambodia, and the UAE, pleaded guilty to conspiracy to commit money laundering, acknowledging his role in laundering over $73 million from scam victims using complex networks of shell companies and international bank accounts.
Principal Deputy Assistant Attorney General Nicole M. Argentieri stated, “Although Li committed this offense from outside the United States, he was not beyond the reach of the Justice Department.” Argentieri emphasized the department’s commitment to pursuing perpetrators of cryptocurrency fraud worldwide in cooperation with international and domestic partners. Li was arrested at Atlanta’s Hartsfield-Jackson International Airport on April 12 and transferred to the Central District of California for trial.
Court documents reveal that Li coordinated with co-conspirators through encrypted messaging to launder funds from victims of cryptocurrency scams. He instructed co-conspirators to set up U.S. bank accounts for shell companies to obscure the fraud’s origins and managed the transfer of victim funds, converting them to virtual currency, specifically Tether (USDT). Li admitted that over $73.6 million was funneled through these bank accounts, with $59.8 million traced to U.S.-based shell companies.
United States Attorney Martin Estrada for the Central District of California urged investors to exercise caution in the cryptocurrency space, warning that quick-profit schemes often lead to financial ruin. This case, managed by the U.S. Secret Service’s Global Investigative Operations Center, highlights the importance of international collaboration in fighting transnational crime, as noted by Acting Assistant Director Michael Ball of the U.S. Secret Service.
Li’s sentencing is scheduled for March 3, 2025, where he faces up to 20 years in prison. The case was pursued with assistance from multiple federal and international agencies, including the U.S. Secret Service, Homeland Security Investigations, and several international partners, reflecting a robust joint effort to combat global financial crime.
