Two individuals suspected of orchestrating a money laundering operation have been apprehended by United States authorities. The operation involved channeling more than $73 million through American financial institutions and ultimately converting the funds into Tether’s USDT token.
The U.S. Justice Department made the announcement on Friday, May 17, revealing that Daren Li was arrested at Hartsfield-Jackson Atlanta International Airport in Georgia on April 12, while Yicheng Zhang was arrested in Los Angeles on Thursday, May 16. An indictment against the pair was unsealed in a California court on May 16, exposing their alleged roles in the illicit scheme.
Li, Zhang, and their accomplices reportedly operated an international criminal network that laundered millions of dollars from crypto scams known as “pig butchering.” In these scams, fraudsters gain the trust of victims, convince them to invest large sums of money, and then vanish with the funds.
The defendants allegedly instructed their co-conspirators to open U.S. bank accounts under the names of shell companies. By persuading victims to transfer millions of dollars into these accounts, the scammers were able to launder the illicit funds.
According to the Department of Justice (DOJ), the money was subsequently distributed to various domestic and international bank accounts. The DOJ stated that Li and Zhang are facing charges of conspiracy to launder money and six counts of international money laundering. If convicted, they could face a maximum sentence of 20 years imprisonment for each count, potentially totaling 140 years behind bars.
Deputy Attorney General Lisa Monaco acknowledged the challenges posed by cryptocurrency fraud but emphasized the commitment to holding those responsible accountable.
“Pig butchering” scams have proven to be highly lucrative for online criminals. In November 2023, the DOJ seized $9 million from a scheme that targeted more than 70 U.S. citizens. Due to the increasing frequency and severity of these scams, lawmakers and regulators have become increasingly concerned in recent months.
Regulators have intensified their efforts to combat crypto scams and related incidents in the market. This is evident in the proposed regulations and industry guidelines implemented by authorities. While these efforts are aimed at protecting investors and safeguarding digital assets, some regulations may impede the development of the sector.
As law enforcement agencies in the United States continue to crack down on crypto-related crime, the pressure on criminals involved in such activities is steadily increasing.