Crypto Fraudster Bags 20 Years Over $73M Ponzi Scheme

A United States federal court has sentenced Daren Li, a 42-year-old dual national of China and St. Kitts and Nevis, to the maximum 20 years in prison for his central role in a massive $73.6 million cryptocurrency investment fraud. The ruling, issued in absentia in the Central District of California, also included three years of supervised release.

Li pleaded guilty in November 2024 to conspiracy to launder proceeds from the scams. According to a press report from the Department of Justice, the Chinese national has been a fugitive since December 2025. The scam centers in Cambodia. It defrauded victims, mostly Americans, of millions in dollars through sophisticated “pig butchering” tactics.

How the Operation Works

The bad actors reached out to victims unsolicited through social media, phone calls, messages, and dating apps. They slowly built fake romantic or professional relationships through encrypted messaging, allowing them to gain trust over time.

The scammers led victims to fake crypto trading websites with domain names that closely mimicked those of legitimate exchanges. Some victims invested directly in nonexistent opportunities presented on these platforms. The bad actors deceived some victims into transferring funds or cryptocurrency to addresses that claimed to resolve fabricated issues, such as supposed computer viruses or account problems.

Li directed accomplices to establish U.S. bank accounts under shell companies. He oversaw incoming wire transfers, received the victim funds, supervised their conversion into virtual currency, and facilitated further laundering to controlled wallets. The operation funneled over $59.8 million from U.S. victims through these channels, causing severe financial harm and emotional distress to those targeted.

Li Sentenced in Absentia

During the sentencing phase, which took place in absentia, Li was identified as the primary defendant who directly managed the victims’ proceeds and was subsequently sentenced in this case. Eight of his co-conspirators have already pleaded guilty in relation to the situation.

Assistant Attorney General A. Tysen Duva criticized the laundering of more than $73 million, emphasizing the extensive harm it has inflicted across the U.S. Bill Essayli, First Assistant U.S. Attorney, urged the public to be cautious when engaging with strangers who ask for money online. The attorney stressed that technology can be used to exploit from afar.

The case underscores the loopholes in digital finance and the need for vigilance with unsolicited investment offers. Meanwhile, officials have vowed that unrelenting international collaboration will continue until Li is apprehended and similar scam operations overseas are dismantled.

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