Crypto Fraud Mastermind Sentenced To 20 Years In $74M Laundering Case

TLDR

• Daren Li was sentenced in absentia to 20 years for laundering $73.6M in a crypto scam.
• Li fled custody in December 2025 after cutting his ankle monitor.
• He admitted to managing $59.8M through U.S.-based shell companies.
• Authorities are working with global partners to locate and return Li.

A 42-year-old man has been sentenced to 20 years in prison for his role in a massive $74 million cryptocurrency investment fraud scheme. Though he pleaded guilty in 2024, he fled custody in 2025 and remains a fugitive. Prosecutors say he helped launder tens of millions through U.S. shell companies, while victims were tricked through fake online relationships into sending money to fraudulent trading platforms.

Fugitive Sentenced in Absentia for Crypto Scam Role

A federal court in the Central District of California has sentenced Daren Li to 20 years in prison for his involvement in a $73.6 million cryptocurrency investment fraud. Prosecutors said the 42-year-old dual citizen of China and St. Kitts and Nevis fled custody in December 2025 after cutting his ankle monitor.

The sentence was issued in absentia. Li had pleaded guilty in November 2024 to one count of conspiracy to commit money laundering. His plea agreement detailed his role in supervising the flow of stolen funds through various bank accounts in the U.S. and overseas.

Crypto Fraud Involved Fake Relationships and Trading Platforms

According to court documents, Li’s co-conspirators targeted U.S. victims using social media, phone calls, and online dating services. They built fake romantic or professional relationships and used encrypted messaging to communicate.

Victims were then directed to deposit money into fake trading platforms or wire funds labeled as technical support fees. These tactics led to a total of at least $73.6 million being deposited into accounts controlled by the group.

Authorities said the network used domestic and international financial channels to move and obscure the funds, making recovery and tracing difficult.

Millions Laundered Through Shell Companies in the U.S.

In his plea deal, Li admitted that about $59.8 million of the stolen funds were moved through shell companies based in the United States. He oversaw the setup of these accounts and supervised the conversion of cash into cryptocurrency.

This tactic was designed to make the funds harder to trace by law enforcement. According to the Justice Department, Li closely managed the flow of money and ensured the digital assets were moved to accounts under the group’s control.

Assistant Attorney General A. Tysen Duva stated, “Li played a leadership role in laundering tens of millions through U.S. accounts and virtual currencies.”

Ongoing International Efforts to Capture Li

Li is currently the only defendant sentenced among those directly managing the movement and receipt of victim funds. Eight other co-conspirators have entered guilty pleas, though none have been sentenced yet.

Federal authorities are continuing efforts to locate and apprehend Li. Prosecutors confirmed that agencies are working with international law enforcement to track him down and return him to U.S. custody.

“The Department of Justice is committed to pursuing justice, even when defendants flee,” said Duva.

The case represents one of the larger crypto-related frauds prosecuted in recent years, targeting unsuspecting victims through deceptive online interactions and laundering the proceeds using both fiat and virtual assets.

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