- Daren Li faces up to 20 years in prison for laundering crypto scam funds.
- Li used shell companies and international accounts to disguise origins of stolen funds.
- Sentencing set for March 3, 2025, with potential restitution up to $73 million.
A Chinese dual citizen has admitted in court to his involvement in laundering funds connected to various crypto scams that stole roughly $73 million. Daren Li, 41, entered his guilty plea on Nov. 11 in a California federal court, acknowledging his role in a scheme that funneled millions from victims into accounts under shell companies, obscuring the true source of the funds.
Prosecutors outlined that from August 2021 to April 2024, Li coordinated with others to create U.S.-based bank accounts linked to shell companies to hide the flow of stolen money. Court records show that after victims’ funds were moved into these accounts, the money was converted to the stablecoin Tether (USDT) and sent to digital wallets under Li’s control.
Source: CourtListener
Laundering Network and Financial Pathways
Investigations revealed that one of the digital wallets associated with the scheme handled over $341 million in various assets. Nicole M. Argentieri, leading the Justice Department’s Criminal Division, stated that Li’s actions involved an extensive web of shell companies and cross-border accounts that were managed outside of the U.S.
The court documents indicate that Li facilitated the deposit of $73.6 million into associated bank accounts, with approximately $59.8 million funneled through U.S.-based shell corporations to help launder the scam proceeds.
Sentencing and Potential Restitution
Following his guilty plea, Li will appear for sentencing on March 3, 2025, with potential penalties including up to 20 years in prison and three years of supervised release. Additionally, he could be fined either $500,000 or double the profits from the crime, whichever is greater. Prosecutors have also raised the possibility of Li paying full restitution to victims, a figure that may range between $4.5 million and $73 million, as part of his sentencing.
