Two individuals accused of orchestrating a money laundering operation have been apprehended by authorities in the United States. The operation involved channeling more than $73 million through American financial institutions before 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 on April 12 at Atlanta’s airport in Georgia, while Yicheng Zhang was apprehended in Los Angeles on Thursday, May 16. The indictment against the pair was unsealed in a California court on May 16, exposing their alleged involvement in the scheme.
Li, Zhang, and their accomplices are accused of running an international criminal network that laundered millions of dollars through crypto scams known as “pig butchering.” In these scams, fraudsters gain the trust of victims, persuade them to invest large sums of money, and then vanish with the funds.
The defendants reportedly instructed their co-conspirators to open U.S. bank accounts under the names of shell companies. Victims were convinced to transfer millions of dollars into these accounts, which were then used to launder the illicit funds.
According to the Department of Justice (DOJ), the money was subsequently dispersed to various bank accounts both within and outside the United States. 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 each face a maximum sentence of 20 years for every count, potentially resulting in a combined total of 140 years behind bars.
Deputy Attorney General Lisa Monaco acknowledged the challenges posed by cryptocurrency fraud but assured the public that those responsible will be held accountable.
The “pig butchering” scams have proven to be highly profitable for online criminals. In November 2023, the DOJ seized $9 million from a scheme that targeted over 70 U.S. citizens. The increasing frequency and severity of these scams have raised concerns among lawmakers and regulators in recent months.
Regulators have intensified their efforts to combat crypto scams and related incidents in the market. This can be observed through proposed regulations and industry guidelines implemented by authorities. While these efforts are aimed at protecting investors and safeguarding digital assets, some regulations may pose obstacles to the sector’s development.
U.S. enforcement agencies are ramping up their efforts to tackle cryptocurrency-related crime, signaling a stronger crackdown on illegal activities in the crypto space.