The United States Justice Department has arrested two Chinese nationals involved in a $73 million money laundering scheme.
According to a May 17 announcement, the accused laundered illicit funds through multiple U.S. financial institutions and later converted them to the stablecoin USDT.
The suspects, Daren Li, a dual citizen of China and St. Kitts and Nevis, and Yicheng Zhang, a Chinese national residing in Temple City, California, ran the operation.
Li and Zhang, along with other accomplices, operated a money laundering network that processed millions of dollars obtained through “pig butchering” crypto scams.
These scams typically involve gaining the victim’s trust before convincing them to invest large sums in seemingly lucrative schemes. Once the funds are transferred, the scammers disappear with the money.
In this case, Li and Zhang instructed their accomplices to open multiple U.S. bank accounts under the names of “dozens of shell companies,” according to the announcement. The group had victims transfer millions into these accounts, which Li and Zhang closely monitored.
After the funds were deposited, they were transferred to various domestic and international bank accounts.
Regulators identified several flagged accounts created at Deltec Bank in The Bahamas. At least one of these accounts was reportedly operated with Li’s assistance.
The funds from these accounts were then converted to USDT, a stablecoin that has become popular among scammers in recent years.
“A cryptocurrency wallet involved in the scheme received more than $341 million in virtual assets,” the DOJ stated.
Li was apprehended at Atlanta’s airport in Georgia on April 12. Zhang was subsequently arrested in Los Angeles on May 16.
The duo faces six counts of international money laundering and conspiracy to launder money. If found guilty, they could each face a maximum sentence of 20 years per count.
Pig butchering scams are estimated to have swindled over $75 billion from victims worldwide, according to recent research.
Last month, the Brooklyn District Attorney’s Office took down a similar scam following numerous complaints across the U.S. Previously, in 2023, the DOJ froze $9 million in USDT stolen from 70 victims through pig butchering scams.
Summary Review: The arrest of Daren Li and Yicheng Zhang highlights the ongoing battle against sophisticated crypto scams and money laundering operations. Their involvement in a $73 million scheme underscores the complexity and international scope of such crimes. As pig butchering scams continue to defraud victims globally, law enforcement agencies are ramping up efforts to track and apprehend perpetrators. This case serves as a stark reminder of the need for vigilance and robust security measures in the crypto space to protect investors and maintain trust in digital financial systems.
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.
