U.S. sentences crypto scam mastermind to 20 years over $73M fraud

A U.S. federal court has sentenced a key figure behind a global cryptocurrency investment scam to 20 years in prison, capping one of the largest crypto-fraud prosecutions tied to so-called “pig butchering” schemes.

The operation defrauded victims of more than $73 million, largely through fake trading platforms and online deception.

Fugitive sentenced in Absentia

The defendant, Daren Li, was sentenced in the Central District of California despite being a fugitive at the time of sentencing. Li, a dual citizen of China and St. Kitts and Nevis, removed his electronic ankle monitor and fled U.S. supervision in late 2025.

U.S. authorities said efforts are ongoing to locate and return him to serve the sentence.

Li had pleaded guilty in November 2024 to conspiracy to commit money laundering, acknowledging his role in moving fraud proceeds generated by overseas scam centers operating primarily out of Cambodia.

Inside the $73 million crypto scam

According to prosecutors, the scam relied on unsolicited social media outreach, fake cryptocurrency investment platforms, and spoofed websites designed to mimic legitimate trading services.

Victims were gradually manipulated into sending funds after building trust through fabricated personal or professional relationships.

Once funds were obtained, Li and his co-conspirators funnelled the money through shell companies and U.S. bank accounts before converting it into cryptocurrency. At least $59.8 million in victim funds passed through U.S.-based accounts as part of the laundering operation.

Eight co-conspirators have already pleaded guilty in related cases. The Justice Department said Li is the first individual directly involved in receiving stolen proceeds to be sentenced, highlighting a broader push to dismantle international crypto fraud networks and hold organizers accountable.