{"id":13985,"date":"2026-02-10T19:22:28","date_gmt":"2026-02-10T19:22:28","guid":{"rendered":"https:\/\/cryptonewsdesk.com\/?p=13985"},"modified":"2026-02-10T19:22:30","modified_gmt":"2026-02-10T19:22:30","slug":"u-s-sentences-crypto-scam-mastermind-to-20-years-over-73m-fraud","status":"publish","type":"post","link":"https:\/\/cryptonewsdesk.com\/index.php\/2026\/02\/10\/u-s-sentences-crypto-scam-mastermind-to-20-years-over-73m-fraud\/","title":{"rendered":"U.S. Sentences Crypto Scam Mastermind to 20 Years Over $73M Fraud"},"content":{"rendered":"\n

A U.S. federal court has handed down a 20-year prison sentence to a key figure behind a sprawling global cryptocurrency scam that defrauded victims of more than $73 million, marking a major milestone in the government\u2019s crackdown on so-called \u201cpig butchering\u201d fraud schemes.<\/p>\n\n\n\n

The sentence was issued by the United States District Court for the Central District of California<\/strong>, even though the defendant remains on the run.<\/p>\n\n\n\n

Fugitive sentenced in absentia<\/h3>\n\n\n\n

The defendant, Daren Li<\/strong>, was sentenced in absentia after fleeing U.S. supervision in late 2025. Li, a dual citizen of China and St. Kitts and Nevis, removed his electronic ankle monitor and disappeared shortly before sentencing.<\/p>\n\n\n\n

U.S. authorities said efforts are ongoing to locate Li and return him to the United States to serve the full term of his sentence.<\/p>\n\n\n\n

Li had pleaded guilty in November 2024 to conspiracy to commit money laundering, admitting his role in moving proceeds generated by overseas scam operations. Prosecutors said those operations were largely run out of Cambodia and targeted victims across multiple countries.<\/p>\n\n\n\n

How the $73 million crypto scam worked<\/h3>\n\n\n\n

According to court filings, the scheme followed a classic \u201cpig butchering\u201d playbook. Victims were contacted through unsolicited messages on social media and messaging apps, where scammers slowly built trust by posing as friends, romantic interests, or business contacts.<\/p>\n\n\n\n

Once trust was established, victims were directed to fake cryptocurrency trading platforms and spoofed websites designed to look like legitimate investment services. These platforms showed fabricated profits, encouraging victims to deposit larger sums over time.<\/p>\n\n\n\n

After funds were sent, Li and his co-conspirators laundered the money through a web of shell companies and U.S. bank accounts before converting it into cryptocurrency. Prosecutors said at least $59.8 million in victim funds flowed through U.S.-based financial institutions as part of the laundering operation.<\/p>\n\n\n\n

Broader crackdown on crypto fraud networks<\/h3>\n\n\n\n

The U.S. Department of Justice<\/strong> confirmed that eight co-conspirators have already pleaded guilty in related cases. Li is the first individual directly involved in receiving and laundering stolen proceeds to be sentenced, a move officials say sends a strong signal to organizers of international crypto fraud rings.<\/p>\n\n\n\n

Authorities described the case as part of a wider effort to dismantle transnational scam networks and pursue not only front-line scammers, but also the financial architects who move and conceal illicit funds.<\/p>\n\n\n\n

While the sentencing does not recover the full losses suffered by victims, prosecutors said it represents a significant step toward accountability in one of the largest crypto fraud cases tied to pig butchering schemes to date.<\/p>\n","protected":false},"excerpt":{"rendered":"

A U.S. federal court has handed down a 20-year prison sentence to a key figure behind a sprawling global cryptocurrency scam that defrauded victims of more than $73 million, marking a major milestone in the government\u2019s crackdown on so-called \u201cpig butchering\u201d fraud schemes. The sentence was issued by the United States District Court for the…<\/p>\n","protected":false},"author":3,"featured_media":13987,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63,70],"tags":[65,893,2016],"class_list":["post-13985","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","category-finance","tag-crypto","tag-crypto-scam","tag-federal-court"],"yoast_head":"\nU.S. Sentences Crypto Scam Mastermind to 20 Years Over $73M Fraud - Crypto News<\/title>\n<meta name=\"description\" content=\"A U.S. federal court has sentenced crypto scam mastermind Daren Li to 20 years in prison over a $73 million pig butchering fraud, despite the defendant fleeing supervision.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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