Cryptocurrency fraud scheme: Chinese citizens arrested and prosecuted
Date: 2024-05-20 Author: Oliver Abernathy Categories: IN WORLD
The US Department of Justice announced the arrest of two Chinese citizens, 41-year-old Daren Li and 38-year-old Yichen Zhang, on charges of laundering $73 million through companies associated with cryptocurrency fraud. Li was arrested on April 12, 2024, at Hartsfield-Jackson Atlanta Airport, and Zhang on May 16, 2024, in Los Angeles.
Description of the circuit
According to court documents, the defendants and their co-conspirators allegedly ran an international syndicate that laundered money made from cryptocurrency investment scams. They used shell companies to raise millions of dollars from victims and funnel those funds through bank accounts and cryptocurrency platforms.
Charges and punishment
Li and Zhang are charged with conspiracy to commit money laundering and six counts of international money laundering. If convicted, they each face up to 20 years in prison on each count.
Fraudsters were able to launder more than $73 million and convert it into the USDT stablecoin. The crypto wallet used by scammers received more than $341 million in cryptocurrencies.
This is not the first case: previously, the US Department of Justice also accused two brothers of stealing $25 million worth of crypto assets in just 12 seconds.
