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20/05/24
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Two Individuals Charged with Laundering of Proceeds from Crypto Investment Scams
On May 17, the Office of Public Affairs of the United States Department of Justice published a press release announcing the unsealing of an indictment charging two Chinese nationals for alleged involvement in a scheme to launder proceeds from crypto investment scams.
Daren Li and Yicheng Zhang were arrested through collaboration among security agencies for leading a scheme to launder a minimum of $73 million tied to a global cryptocurrency investment scam.
Together with other conspirators, they were allegedly in charge of a global syndicate that laundered proceeds of crypto investment scams called “pig butchering.” They used fraudulent means to induce victims of the schemes to transfer funds to US-based bank accounts opened in the names of several shell firms majorly meant to help launder fraud proceeds.
Some money launderers transfer such funds to local and global bank accounts as well as crypto platforms towards concealing where they are coming from, the owners, nature, and control of the funds.
“The fraud scheme involved more than $73 million laundered through U.S. financial institutions to bank accounts in The Bahamas, and converted to the virtual asset USDT, or Tether. A cryptocurrency wallet involved in the scheme received more than $341 million in virtual assets,” reads the press release.
They have been charged with conspiracy to commit money laundering and six substantive counts of global money laundering, and face imprisonment of up to 20 years on each count, if convicted.
“Cryptocurrency investment scams exploit the borderless nature of virtual currency and online communications to defraud victims,” said Deputy Attorney General Lisa Monaco.
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