DOJ charges two Chinese nationals in $73m crypto scam

by

As a researcher with a background in financial crimes and money laundering, I find this case particularly alarming due to its sheer scale and the involvement of stablecoins like USDT. The arrest of Daren Li and Yicheng Zhang by the United States Justice Department is a significant step towards dismantling a complex money laundering network that had been operating under the radar for quite some time.

As a researcher, I’d rephrase that as follows: Two Chinese individuals have been taken into custody by the US Justice Department for their involvement in a money laundering operation worth over $73 million.

Based on a May 17 declaration, the suspect reportedly transferred ill-gotten gains through various American financial institutions, subsequently converting those funds into the stablecoin USDT.

As a analyst, I’d rephrase it this way: I’ve identified two individuals involved in the case at hand. One is Daren Li, who holds citizenship in China and St. Kitts and Nevis. The other is Yicheng Zhang, a Chinese national living in Temple City, California.

As a crypto investor, I’ve come across information suggesting that Li and Zhang, among others, ran a complex money laundering operation. They allegedly obtained vast sums of money through “pig butchering” crypto scams. In simpler terms, this means they lured unsuspecting victims into investing in fake cryptocurrency projects and then manipulated the market to drain their investments. The proceeds from these scams were then laundered through this network to hide the ill-gotten gains.

As a seasoned crypto investor, I’ve learned to be wary of individuals who try to win my trust quickly and propose enticing investment opportunities. These schemes often ask for substantial investments once you’re fully on board. However, it’s crucial to remember that once you transfer the funds, there’s no guarantee these scammers will keep their word or even be around anymore. Instead, always verify the authenticity of such offers and thoroughly research both the individuals involved and the investment itself before making any commitments.

The pair directed their confederates to establish numerous U.S. banks accounts, disguising them as “many fictitious businesses,” according to the statement. The conspirators then persuaded victims to deposit large sums into these accounts, overseeing all transactions by Li and Zhang.

After securing the necessary funds, they were distributed to various domestic and foreign bank accounts.

As a crypto investor, I’ve come across some troubling news regarding certain accounts identified by regulators that were reportedly opened at Deltec Bank in The Bahamas. Among these accounts, there is one that has been suspected of being managed with the help of someone named Li’s financial assistance.

As a crypto investor, I’ve noticed that some fraudsters have favored USDT (Tether) in their schemes during the past few years. Consequently, funds from my accounts have been exchanged into this stablecoin for added transaction flexibility.

Over $341 million worth of virtual assets were transferred into the implicated cryptocurrency wallet, according to the Department of Justice’s declaration.

On April 12, Li was taken into custody at the airport in Georgia, United States. Later, on May 16, Zhang was arrested in Los Angeles.

The duo stands accused of six charges related to international money laundering and conspiring to launder funds. If found guilty, they face a possible prison term of up to 20 years for every charge.

Recent studies estimate that the global losses due to pig butchering scams may reach an astounding $75 billion.

Last month, the Brooklyn District Attorney’s Office took action against one particular scam following numerous reports of similar incidents across the country. Previously, in the year 2023, the Department of Justice seized $9 million worth of USDT that had been taken from 70 victims through pig butchering schemes.

Read More

2024-05-20 13:00