On 9 February 2026, the US DOJ Criminal Division announced the sentencing of Daren Li, aged 42, to 20 years in federal prison. The court also imposed three years of supervised release. Li had pleaded guilty on 12 November 2024 in the Central District of California to conspiring to launder funds obtained from victims through cryptocurrency scams and related fraud.
The conspiracy operated from scam centres based in the Kingdom of Cambodia. Co conspirators contacted victims through unsolicited social media messages, telephone calls, text messages and online dating platforms. They built trust through fabricated professional or romantic relationships. Victims were then directed to deposit funds into spoofed cryptocurrency trading platforms designed to resemble legitimate exchanges.
In certain instances, the group posed as technical support representatives. They induced victims to transfer funds via wire transfers or cryptocurrency platforms to resolve fabricated computer related issues.
Li admitted that at least USD 73.6 million in victim funds were deposited into bank accounts under his control and that of co conspirators. Of this total, USD 59.8 million was routed through accounts of United States based shell companies before being converted into virtual assets to obscure the funds’ origin.
US DOJ Assistant Attorney General A. Tysen Duva of the Criminal Division stated “As part of an international cryptocurrency investment scam, Daren Li and his co-conspirators laundered over $73 million dollars stolen from American victims,” said
Eight co conspirators have pleaded guilty to date. Li is the first defendant sentenced who was directly involved in the receipt of victim funds.
The United States Secret Service (USSS) Global Investigative Operations Center led the investigation. The Homeland Security Investigations El Camino Real Financial Crimes Task Force, Customs and Border Protection National Targeting Center, United States Department of State Diplomatic Security Service, Dominican National Police and United States Marshals Service provided assistance.
This sentencing is a deterrent against the pig butchering operations. These schemes exploit social engineering tactics and spoofed digital asset platforms. Virtual asset and crypto asset service providers may consider implementing robust transaction monitoring protocols, and may consider to flag high volume deposits from unknown sources routed through shell entities.
