In the US state of California, a high-profile case in the field of cryptocurrency fraud has been concluded. 42-year-old Daren Li, a citizen of China and Saint Kitts and Nevis, was sentenced to 20 years in prison for laundering over $73 million in cryptocurrency. It was noted that the court decision was given in absentia after Li escaped from custody by removing his electronic bracelet in December 2025.
Fraud Network and Methods Used
Daren Li admitted to leading an international criminal organization established in November 2024 for the purpose of money laundering. During the investigations, it was determined that the organization directed the victims to fake investment platforms by establishing long-term trust relationships, especially through social media and dating applications. One of the leading platforms of the criminal network is stated as CoinZoom.
Financial Structure and Operation Details
According to the information in the court documents, Li and his team transferred the money they collected from the victims through 74 US-based shell companies. The funds obtained were first converted from US Dollars to the stable cryptocurrency called Tether (USDT) and then transferred to offshore accounts such as Deltec Bank in the Bahamas. During these transactions, complex financial structures were created that made it difficult to trace cryptocurrencies.
Increasing “Pig Butchering” Scams on a Global Scale
The criminal network in question used a fraud method known as “pig butchering”, which lured victims through social media and dating sites. The headquarters of the operation were generally identified as call centers in Cambodia. It was noted that Li managed bank accounts through the network he established here and guided his accomplices in opening shell companies.
In the encrypted messages obtained by the authorities, it was stated that Li gave instructions to his partners on how to manage digital assets and open accounts. In this process, it was determined that the transfer of money from fiat currencies to digital assets made the fraud chain difficult to track at the international level.
Similar accusations were leveled against his accomplices other than Li. For example, Chinese citizen Jingliang Su was sentenced to 46 months in federal prison for laundering the $36.9 million he collected through similar methods. It was determined that a total of 174 victims in the fraud network in which Su was involved were directed to fake investment platforms through social media and dating applications.
American officials state that, within the scope of the operation, they traced a large amount of digital assets through international bank transfers and that such frauds pose a serious threat to financial systems.
Authorities state that new methods have to be developed in the fight against fraud due to cryptocurrencies that allow instant transfer of digital products in different geographies.
