Arrests Made in $73 Million Cryptocurrency Laundering Scam: Two Suspects Facing Charges

Los Angeles County Resident Arrested in $73 Million Cryptocurrency Scam

In a shocking turn of events, two individuals, including a Los Angeles County resident, have been arrested for their alleged involvement in laundering over $73 million through cryptocurrency scams. The suspects, Yicheng Zhang and Daren Li, are accused of playing key roles in managing an international syndicate that operated fraudulent cryptocurrency investment schemes, also known as “pig butchering.”

The elaborate scheme involved scammers establishing trust with victims before convincing them to invest in fake cryptocurrency ventures. Once the victims transferred millions of dollars into U.S. bank accounts opened under the names of shell companies, the funds were then laundered through various domestic and foreign accounts and cryptocurrency platforms to conceal their origins.

Court documents revealed that the duo monitored lower-level co-conspirators who transferred the funds overseas into bank accounts at Deltec Bank in The Bahamas. The money was then converted into the cryptocurrency USDT, or Tether, and sent to virtual asset wallets, with one wallet receiving over $341 million in virtual assets.

Both Li and Zhang have been charged with conspiracy to commit money laundering and multiple counts of international money laundering. If convicted, they could face up to 20 years in prison on each count. Zhang has pleaded not guilty to the charges and remains in federal custody, while Li is scheduled for arraignment on May 20.

U.S. Attorney Martin Estrada emphasized the importance of educating oneself on financial fraud to protect against such predatory activities. The case is currently under investigation by the U.S. Secret Service’s Global Investigative Operations Center, and victims of cryptocurrency investment fraud are encouraged to report any suspicious activity online at IC3.gov.

As the investigation unfolds, authorities are urging individuals to remain vigilant and report any potential scams to help prevent further financial losses. Stay tuned for updates on this developing story as more details emerge.