US Authorities Arrest Duo in $73M Crypto Money Laundering Scheme
Summary:
U.S. officials have apprehended two individuals, Daren Li and Yicheng Zhang, implicated in a major money laundering operation involving over $73 million funneled through U.S. banks and converted into Tether (USDT). Identified as part of 'pig butcher' crypto scams, the duo allegedly deceived victims into pouring large funds into fake businesses which were used for money laundering. The Department of Justice indicates that over $73 million was processed through U.S. institutions and converted into USDT. If convicted, they face a maximum of 20 years in jail per charge and a potential total term of 140 years. Recent instances of such scams have led authorities to intensify efforts to combat crypto-related fraud.
U.S. officials have apprehended two persons implicated in orchestrating a money laundering operation, which allegedly saw over $73 million channeled through U.S. banks, before being transformed into Tether (USDT). The Department of Justice (DOJ) disclosed on Friday that Daren Li, aged 41, was detained at an airport in Atlanta on April 12, while Yicheng Zhang, aged 38, was apprehended in Los Angeles on Thursday. An indictment incriminating them was revealed in a court in California on Thursday, delineating their purported participation in the plot.
The duo, together with their partners, were accused of managing an international illicit network that laundered money generated from 'pig butcher' crypto scams. These schemes trick victims into investing large sums before absconding with the funds. The alleged culprits instructed their partners to establish U.S. bank accounts under the guise of fake businesses. They deceived victims into pouring millions of dollars into these accounts, which were subsequently used for money laundering.
The DOJ stated that the funds were dispersed to multiple national and international banks, with over $73 million processed through U.S. financial institutions before being sent to accounts in Bahamas and converted into USDT. The associated crypto wallet used in the scam received over $341 million in cryptocurrency.
Both Li and Zhang are facing charges of money laundering conspiracy and six counts of international money laundering. If convicted, they stand to face a maximum of 20 years in jail for every charge, adding up to a possible 140-year prison term.
There's a growing concern about 'pig butchering' scams which have proven to be profitable for online fraudsters. As an example, in November 2023, the U.S. DOJ confiscated $9 million from a scam, which targeted over 70 U.S. citizens, signaling a worrying trend that has caught the attention of legislators and regulators recently.
Efforts to combat crypto-related fraud have been intensified with proposed regulations and guidelines detailed by relevant authorities. Despite some stumbling blocks, the move has been applauded for safeguarding investors and securing digital assets. The increase in efforts by U.S. enforcement agencies to clampdown on crypto-related criminal activities is increasingly noticeable.
Published At
5/18/2024 12:52:54 PM
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