May 17 (Reuters) – U.S. authorities have charged two Chinese nationals with running a cryptocurrency scam that laundered at least $73 million from unsuspecting victims, the Justice Department announced on Friday.
Yicheng Zhang was arrested in Los Angeles on Thursday, as revealed by an indictment unsealed later that day in U.S. District Court for California’s central district. Daren Li, who holds dual citizenship in China and St. Kitts and Nevis, was arrested at the Atlanta airport in April.
The U.S. government accused the two men of participating in a cryptocurrency investment scam known as “pig butchering,” which has become a major global issue. According to the charges, they directed associates to open U.S. bank accounts under fake company names. Victims were tricked online into depositing money into these accounts, which was then laundered through U.S. banks and sent to accounts in the Bahamas.
“Even though fraud in the crypto markets can take many forms and often operates from distant locations, those responsible are not beyond the reach of the law,” said U.S. Deputy Attorney General Lisa Monaco.
Li and Zhang are facing charges of conspiracy to commit money laundering and six counts of international money laundering. If found guilty, they could each face up to 20 years in prison for each count, according to the Justice Department.
Summary Review: The arrests of Yicheng Zhang and Daren Li highlight the ongoing efforts of U.S. authorities to crack down on sophisticated cryptocurrency scams. Despite the complex and global nature of these fraud schemes, law enforcement agencies are determined to hold perpetrators accountable. If convicted, both men face severe penalties, underscoring the serious consequences of engaging in such fraudulent activities.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
