A U.S. federal court in the Central District of California has sentenced Daren Li, a key organizer of a global cryptocurrency investment scam, to 20 years in prison for his role in a fraud that stole over $73 million from victims. The sentencing was conducted in absentia, as Li, a dual citizen of China and St. Kitts and Nevis, removed his electronic ankle monitor and fled U.S. supervision in December 2025. Authorities are actively searching for him to serve the sentence.
Li pleaded guilty in November 2024 to conspiracy to commit money laundering, admitting to moving fraud proceeds generated by overseas scam centers primarily operating out of Cambodia. The scheme, commonly known as "pig butchering," involved building trust with victims through unsolicited social media and dating platform contacts, then luring them to fake cryptocurrency investment platforms and spoofed websites designed to mimic legitimate trading services.
Prosecutors detailed that once victims deposited funds, the money was funneled through a network of shell companies and U.S. bank accounts—with at least $59.8 million passing through U.S.-based accounts—before being converted into cryptocurrency to obscure its origin. The fake platforms displayed fabricated profits to convince victims their investments were growing. In some instances, scammers posed as technical support to trick victims into transferring more money to "secure" their accounts.
The Justice Department highlighted that Li is the first individual directly involved in receiving stolen proceeds to be sentenced in such a case, marking a significant step in efforts to dismantle international crypto fraud networks. Eight co-conspirators have already pleaded guilty in related cases.
This sentencing occurs amidst a global crackdown on crypto scam networks. Interpol has officially identified scam compounds as a major transnational criminal threat, with operations affecting victims in over 60 countries and generating billions in annual losses. Experts like Ari Redbord of TRM Labs note that cryptocurrency enables these large-scale, organized crime businesses to move and launder stolen funds across borders with alarming efficiency and scale.
