- U.S. authorities arrested Daren Li and Yicheng Zhang in connection with a $73 million money laundering scheme.
- The defendants laundered funds through U.S. and international bank accounts.
- Proceeds from the investment scam were converted to USDT stablecoin.
The U.S. Department of Justice has indicted two Chinese nationals for allegedly playing key roles in a scheme that laundered $73 million in cryptocurrency investment schemes.
Authorities arrested Darren Lee, 41, on April 12 and Yicheng Zhang, 38, on May 16, according to an indictment unsealed Thursday in the U.S. District Court for the Central District of California.
Li is a dual citizen of China and St. Kitts and Nevis, and Zhang is from Temple City, California.
The defendants committed an international cryptocurrency investment fraud.
Li, Zhang and others are believed to have been behind an international money laundering ring that defrauded victims by slaughtering pigs. Common crypto scams.
According to court documents, the suspects laundered the proceeds from these cryptocurrency scams through the bank accounts of several shell companies.
The Justice Department’s Office of Public Affairs announced that more than $73 million was defrauded from victims and laundered through U.S. and international bank accounts. The laundered money was headed to the Bahamas and converted to Tether (USDT).
“Cryptocurrency investment scams take advantage of the borderless nature of virtual currencies and online communications to defraud victims,” U.S. Deputy Attorney General Lisa Monaco said in a press release.
“Scams in the cryptocurrency market take many forms and hide in remote places, but their perpetrators are not beyond the reach of the law. “Today, we announce the arrest of two foreign nationals accused of leading a money laundering scheme worth at least $73 million in connection with an international cryptocurrency investment fraud,” he added.
According to court documents, cryptocurrency wallets linked to the scam received more than $341 million in cryptocurrency.
The DOJ charged Li and Zhang with conspiracy to commit money laundering and six counts of international money laundering. Each charge carries a maximum penalty of 20 years in prison.
Last November, the Justice Department said it had seized $9 million USDT in connection with an international dating and pig slaughter scheme.