U.S. Court Sentences Fugitive Crypto Scam Organizer to 20 Years in $73M Global Fraud Case

A U.S. federal court has sentenced a key organizer of a massive crypto investment scam to 20 years in prison, underscoring Washington’s intensified crackdown on global cryptocurrency fraud schemes. The sentence was issued in absentia after the defendant fled electronic monitoring, according to the U.S. Department of Justice.

Daren Li, a 41-year-old dual citizen of China and St. Kitts and Nevis, was sentenced by a federal judge in California for his role in a $73 million crypto fraud and money-laundering conspiracy that targeted victims worldwide, including many in the United States. Prosecutors said Li helped operate an international scam network that relied heavily on social media, dating apps, and fake cryptocurrency trading platforms to deceive victims.

Authorities described the scheme as a classic example of “pig butchering,” a type of crypto scam in which perpetrators slowly build trust with victims through online relationships before persuading them to invest in fraudulent platforms. In some cases, scammers impersonated customer support or investment advisors to pressure victims into transferring funds, which were then laundered through shell companies and converted into cryptocurrency.

Court records show that at least $73.6 million in victim funds flowed into accounts tied to the criminal network, with nearly $60 million routed through U.S.-based shell companies before being converted into crypto assets. Li pleaded guilty in November 2024 to a money-laundering conspiracy related to the fraud, making him the first recipient of victim funds in the case to be sentenced. Eight other co-conspirators have already pleaded guilty.

Despite the guilty plea, Li fled in December after cutting off his electronic monitoring device. In addition to the 20-year prison sentence, the court imposed a three-year term of supervised release.

The case highlights the growing scale of crypto-enabled fraud. Ari Redbord, global head of policy and government affairs at blockchain intelligence firm TRM Labs, said scam centers like those operating in Cambodia have become one of the largest organized cybercrime industries globally. He noted that cryptocurrency plays a central role by enabling fast, cross-border movement and laundering of illicit funds.

The sentencing comes amid rising international pressure on scam operations in Southeast Asia. Interpol has formally labeled scam compound networks a major transnational criminal threat, while several high-profile executions and convictions in China and Myanmar have drawn global attention to the human and financial toll of crypto-related fraud.