Crypto Scam Mastermind Gets 20 Years After $73M Global Fraud

US court sentences crypto scam leader Daren Li to 20 years for $73M global fraud targeting American investors.

A federal judge in California sentenced Daren Li to 20 years in prison for a global crypto scam. Authorities said the scheme robbed victims of more than $73 million, including many Americans. The case is red-flagging rising risks associated with online investment fraud and cross-border digital crimes.

US Court Hands Maximum Sentence in Major Crypto Scam Case

Daren Li is 42 years old and holds dual nationality of China and St. Kitts and Nevis. He was given the maximum statutory sentence in the Central District of California. The court also sentenced to 3 years of supervised release after imprisonment.

Related Reading: Chinese Hacker Sentenced to 46 Months in $36.9M Scam

The sentencing took place while Li was still a fugitive. He pleaded guilty in November 2024 to the conspiracy charges. However, he escaped federal oversight in December of 2025. He took off his electronic ankle monitor and vanished, according to prosecutors.

The way of the scam was commonly referred to as pig butchering. Co-conspirators contacted victims via social media, calls, and dating. They gradually started trusting and promoted the investments of fake cryptocurrencies. Many victims thought the platforms were legitimate trading services.

According to court filings ,the scheme transferred funds via US bank accounts. The money was then converted into digital currency such as Tether USDT. This process helped to conceal the source and nature of the ownership of the funds.

Assistant Attorney General A. Tysen Duva said Li’s actions caused devastating financial harm. He added that authorities will be working globally to have Li returned to the United States. The statement laid emphasis on accountability for large-scale crypto crimes.

Investigators established at least $73.6 million flowed into accounts controlled by the conspiracy. Of this amount, nearly 59.8 million dollars flowed through US shell companies. These companies were mostly for the purpose of moving and disguising stolen money.

Li ordered co-conspirators to set up bank accounts using false business names. He monitored wire transfers of both domestic and international victims. After that, the money was converted into virtual currencies to make it harder to trace.

Authorities Warn Public as Investigation Continues Worldwide

First Assistant US Attorney Bill Essayli warned the public of online investment risks. He said that technology allows criminals to reach out to victims at faraway places. Therefore, officials have been urging people not to send money to online strangers.

In certain instances, the scammers were posing as technical support agents. They claimed victims had computer viruses or there were problems with their accounts. The victims were told to send money to correct problems. These problems, however, did not exist.

Eight co-conspirators have so far pleaded guilty. Li is the first defendant who handled money directly from the victims. Prosecutors called him a key organizer of the operation.

The US Secret Service Global Investigative Operations Center is spearheading the investigation. Several agencies are assisting, including Homeland Security Investigations and the US Marshals Service. International partners are also helping to support the case.

Authorities believe the sentencing sends a powerful message. Large-scale crypto scam will be severely punished. Law enforcement is still pursuing suspects remaining at large and stolen assets.

The Justice Department said that the case is indicative of increasing crypto-related financial crime. Regulators and agencies are stepping up and working together to combat these threats. As the value of digital assets increases, enforcement efforts are also on the rise.

Overall, the case highlights the importance of being cautious as an investor. Officials keep urging the public to ensure platforms are carefully checked. Awareness is key because scams on the internet are increasing in sophistication around the world.

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