A notorious fugitive involved in a staggering $73 million scam known as the 'pig butchering' scheme has been handed a 20-year prison sentence, albeit in absentia. This case centers around Daren Li, a dual citizen of China and St. Kitts and Nevis, who played a key role in a vast international cryptocurrency fraud that preyed on unsuspecting victims.
The term "pig butchering" refers to a type of scam where criminals establish trust through various online platforms, including messaging apps and social media, before luring victims into investing in fictitious opportunities. Unfortunately, instead of using these investments to generate promised returns, the scammers simply deplete the victims’ cryptocurrency wallets.
In November 2024, the 42-year-old Li admitted to conspiracy charges related to money laundering stemming from these scams, which were orchestrated from locations in Cambodia. His arrest occurred in April 2024 at the bustling Hartsfield-Jackson Atlanta International Airport.
However, the plot thickened when Li evaded justice by fleeing in December 2025 after disabling his ankle monitor, thus becoming a fugitive prior to his sentencing in a California federal court. In addition to his substantial prison term, he faces three years of supervised release following his incarceration.
Assistant Attorney General A. Tysen Duva of the Criminal Division stated, "As part of an international cryptocurrency investment scam, Daren Li and his co-conspirators laundered over $73 million dollars stolen from American victims. The Court's sentence reflects the gravity of Li's conduct, which caused devastating losses to victims throughout our country."
Court filings reveal that Li was intricately linked to an international crime syndicate that employed a network of money launderers to siphon off millions from numerous victims. These funds were then funneled into U.S. bank accounts associated with approximately 74 shell companies. From there, the money was transferred to both domestic and international accounts, as well as cryptocurrency platforms, to obscure its origins.
Li directed his accomplices to set up bank accounts and transfer more than $73 million to Deltec Bank located in the Bahamas, where it would be converted into cryptocurrency such as Tether. Investigations further unveiled that one of the wallets used by this fraudulent ring contained over $341 million in cryptocurrency, marking a massive scale of illicit financial activity.
Notably, Li is the first among eight co-defendants who have also confessed to their involvement in receiving funds from victims to face sentencing. In December, the Justice Department took action against four additional suspects implicated in a separate pig butchering scheme, which is tied to losses exceeding $80 million.
According to the FBI's 2024 Internet Crime Report, investment fraud schemes have resulted in more than $6.5 billion being stolen from nearly 48,000 victims, a significant rise from $4.57 billion in 2023. This alarming trend highlights the ever-evolving landscape of online scams and the urgent need for vigilance in the digital age.
