A US federal court has sentenced a fugitive to the maximum statutory prison term for his role in a $73 million crypto fraud operation that targeted victims through fake investment platforms and online deception.
This case illustrates the growing risk of transnational crypto fraud. Scams like these have prompted US authorities to intensify investigations and enforcement targeting international money-laundering operations.
SponsoredThe Anatomy of a $73 Million Crypto Scam Operation
According to the Department of Justice, Daren Li, a dual national of China and St. Kitts and Nevis, played a key role in an international cryptocurrency investment scam. It operated out of scam centers in Cambodia.
The operation relied on social engineering, fake trading platforms, and money laundering networks to steal funds from victims in the US. Prosecutors said unindicted members of the conspiracy contacted victims through unsolicited social media messages, phone calls, and online dating services.
After building trust through professional or romantic relationships, often using end-to-end encrypted messaging apps, the scammers directed victims to spoofed websites designed to resemble legitimate cryptocurrency trading platforms.
“While technology has made it possible for people to quickly communicate with others who live oceans away, it also has made it easier for criminals to prey on innocent victims,” First Assistant US Attorney Bill Essayli for the Central District of California stated.
In other variations of the scheme, scammers told victims that they were representatives of customer support or tech service companies. They then pressured victims into sending funds via wire transfers or cryptocurrency platforms to resolve fake computer issues or non-existent security threats.
SponsoredFrom Arrest to Escape: The Fugitive’s Flight
Li was arrested in April 2024 at Hartsfield-Jackson Atlanta International Airport. He pleaded guilty on November 12, 2024, to conspiring to launder proceeds from cryptocurrency scams and related fraud.
As part of his plea agreement, he admitted that at least $73.6 million in victim funds was deposited into bank accounts controlled by him and his co-conspirators. Of that total, at least $59.8 million flowed through US shell companies used to launder the proceeds.
Li also revealed that he directed others to open US bank accounts for shell companies, monitored international and domestic wire transfers, and oversaw the conversion of stolen funds into cryptocurrency to obscure their origin and ownership.
Prosecutors said Li is the first defendant in the case to be sentenced at that level of involvement. Eight co-conspirators have already pleaded guilty.
However, before sentencing, Li fled. Prosecutors said he cut off his electronic ankle monitoring device in December 2025 and absconded. He remains a fugitive.
Despite his disappearance, the court proceeded with sentencing. On February 9, 2026, a federal judge sentenced Li to the statutory maximum of 20 years in prison. This would be followed by three years of supervised release.
“The Criminal Division will work with our law enforcement partners around the world to ensure that Li is returned to the United States to serve his full sentence,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division.
The sentencing marks the latest move in a broader Justice Department crackdown on global scam centers and crypto-related fraud. Last month, BeInCrypto reported that a US court sentenced a Chinese national to nearly 4 years in prison. The court also ordered him to pay more than $26 million in restitution for his involvement in a $36.9 million crypto scam.
