A federal court in California has sentenced fugitive Daren Li to 20 years in prison for orchestrating a large-scale cryptocurrency investment scam that defrauded U.S. victims of more than $73 million. The sentence was issued in absentia after Li fled supervision by removing his court-ordered electronic monitoring device.
Li, a dual national of China and St. Kitts and Nevis, also received three years of supervised release following imprisonment. Authorities say the scheme was operated through organized scam centers based in Cambodia and targeted victims across the United States.
How the Cryptocurrency Scam Operated
Prosecutors detailed how the fraud relied heavily on social engineering tactics. Victims were approached through social media platforms, text messages, phone calls, and online dating services. Scammers built trust by posing as romantic partners, investment professionals, or business contacts before directing victims to fraudulent cryptocurrency trading platforms.
Tech Support and Investment Deception
In other cases, members of the conspiracy impersonated technical support representatives, falsely claiming victims’ computers were compromised. Victims were persuaded to send funds through wire transfers or cryptocurrency transactions to resolve problems that did not exist.
Investigators have identified Cambodia as a major hub for so-called “pig-butchering” scams, where organized networks generate tens of millions of dollars daily. Financial intelligence reports indicate that billions in cryptocurrency have flowed through Cambodia-linked entities since 2021, often tied to fraud and money laundering.
U.S. officials say international efforts are underway to locate and return Li to serve his full sentence, underscoring growing enforcement against cross-border cryptocurrency crimes.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.