A key figure behind a global cryptocurrency investment scam has been sentenced to 20 years in US federal prison. Daren Li, a dual citizen of China and St. Kitts and Nevis, received the maximum statutory sentence in the Central District of California. In addition to the prison term, Li will face three years of supervised release. At the time of sentencing, Li was a fugitive, having removed his electronic ankle monitor and fled US supervision in late 2025. Authorities are working to locate and return him to the United States to serve his sentence.
Li pleaded guilty in November 2024 to conspiracy to commit money laundering, admitting his role in moving fraud proceeds from scam centers primarily operating out of Cambodia. The Justice Department said Li is the first individual directly involved in receiving stolen proceeds to be sentenced, highlighting a broader effort to dismantle international crypto fraud networks and hold organizers accountable. Eight co-conspirators have already pleaded guilty in related cases and are awaiting sentencing.
The scam, known as "pig butchering," involved defrauding victims of more than $73 million. Prosecutors said that Li and his co-conspirators established spoofed domains and websites resembling legitimate trading platforms to promote fraudulent crypto investments after gaining victims' trust. The conspirators often initiated contact through social media platforms and dating apps, cultivating professional or romantic relationships before persuading victims to transfer funds into accounts controlled by the group. Once the funds were obtained, Li and his co-conspirators funneled 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. A cryptocurrency wallet involved in the scheme received more than $341 million in virtual assets.
Assistant Attorney General A. Tysen Duva stated that the court's sentence reflects the gravity of Li's conduct, which caused devastating losses to victims throughout the country. Duva added that authorities would work with law enforcement partners around the world to ensure that Li is returned to the United States to serve his full sentence. Law enforcement from Austria, France, Germany, Romania, Spain and Switzerland were also involved in the investigation.