DOJ: Two Alleged Scammers Arrested in $73M Laundering Scheme

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Justice Department Reveals Arrest of Two Individuals for $73M Laundering Scheme

The recent disclosure by the Justice Department unveiled the apprehension of two alleged scammers involved in laundering a staggering sum of “at least” $73 million through shell companies linked to deceitful cryptocurrency investment schemes termed “pig butchering.” This elaborate deception technique entails scam artists reaching out to unsuspecting victims via online platforms, forging a sense of trust, and eventually coercing them into investing in a counterfeit virtual currency.

The primary suspect, Daren Li, a 41-year-old possessing dual citizenship in China and St. Kitts and Nevis, with residences in China, Cambodia, and the United Arab Emirates, was detained on April 12 at Hartsfield-Jackson Atlanta International Airport. Following his capture, Li was transferred to the Central District of California for further legal proceedings. Additionally, Yicheng Zhang, 38, a Chinese national residing in Temple City, California, was apprehended in Los Angeles on a subsequent date.

According to the officials at the DOJ, both Li and Zhang were accused of ensnaring victims into depositing funds into U.S.-based accounts. Subsequently, the suspects reportedly engaged co-conspirators to facilitate the laundering of money through American financial institutions en route to bank accounts in the Bahamas. The ill-gotten gains were then converted into the stablecoin Tether, also recognized as USDT.

U.S. Deputy Attorney General Lisa Monaco highlighted the exploitative nature of cryptocurrency investment scams, underscoring their utilization of virtual currencies and online communication to perpetrate fraudulent acts on unsuspecting individuals. Monaco iterated the commitment of law enforcement to pursue justice against criminals involved in such financial malfeasance, regardless of the sophisticated mechanisms employed to conceal illicit activities.

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The accused duo is facing charges of conspiracy to commit money laundering and six counts of international money laundering. Should they be convicted, the perpetrators could potentially serve a maximum of 20 years in prison for each count brought against them.

Continued Prosecutorial Efforts in the Cryptocurrency Sphere

Prior to these recent arrests, the Justice Department made headlines after apprehending two siblings for allegedly orchestrating a swift heist of approximately “$25 million worth of cryptocurrency within a mere 12 seconds.” Moreover, in a separate incident earlier in the same month, Roger Ver, popularly known as ‘Bitcoin Jesus’, was indicted for allegedly evading taxes amounting to nearly $50 million.

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Chris Jones

Hey there! 👋 I'm Chris, 34 yo from Toronto (CA), I'm a journalist with a PhD in journalism and mass communication. For 5 years, I worked for some local publications as an envoy and reporter. Today, I work as 'content publisher' for InformOverload. 📰🌐 Passionate about global news, I cover a wide range of topics including technology, business, healthcare, sports, finance, and more. If you want to know more or interact with me, visit my social channels, or send me a message.
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