$74 Million Crypto Pig Butchering Scam, US Court Hands Down 20-Year Prison Sentence
$74 Million Crypto Pig Butchering Scam, US Court Hands Down 20-Year Prison Sentence
The ringleader of a group that carried out and laundered a virtual asset investment scam worth $74 million has been sentenced to 20 years in prison by a U.S. court, sending a stern warning against illegal activities in the market.
According to cryptocurrency-focused media outlet The Block on February 10 (local time), a U.S. court sentenced Daren Li to 20 years in prison after convicting him of participating in a $74 million cryptocurrency investment fraud and money laundering conspiracy. Li was accused of systematically laundering funds collected from victims worldwide through a scam method known as “pig butchering.” The U.S. Department of Justice (DOJ) stated that Li managed a network of bank accounts under shell company names, disguising fraud proceeds as legitimate assets.
The total amount of damage from the scam reached at least $74 million, with more than $15 million confirmed to have been directly laundered through accounts managed by Li. The court emphasized that the ruling would serve as a powerful message to those plotting sophisticated digital asset fraud. Prosecutors found that Li and his co-conspirators lured victims to fake cryptocurrency investment platforms by promising high returns. Once victims deposited funds, the money was transferred—under Li’s direction—to shell company bank accounts and then converted into stablecoins such as USDT before being sent to overseas wallets.
U.S. federal prosecutor Martin Estrada criticized Li’s crimes for destroying the lives of countless ordinary people. In addition to the prison sentence, the ruling ordered Li to serve three years of supervised release, pay $73 million in restitution to victims, and forfeit $15 million. Li was arrested last April at Atlanta’s Hartsfield-Jackson International Airport in Georgia and later pleaded guilty while standing trial. The DOJ reaffirmed its commitment to strengthening investigative capabilities against financial crimes exploiting virtual asset technology and to relentlessly pursuing and punishing international fraud rings.
As the virtual asset market continues to expand, organized investment frauds exploiting it are becoming increasingly sophisticated, underscoring the need for heightened caution among investors. U.S. authorities are expanding international joint investigations to cut off money laundering routes used by overseas-based fraud organizations. The 20-year prison sentence is viewed as a clear demonstration of the judiciary’s zero-tolerance stance toward digital asset-related crimes. As Li’s criminal activities have been fully exposed, calls for stronger self-regulation within the cryptocurrency industry are also growing.
The U.S. court’s decisive ruling suggests that cryptocurrency investment fraud is no longer able to easily evade the law. The $74 million laundering network led by Li was dismantled after meticulous tracking by the DOJ and federal prosecutors, and asset forfeiture proceedings are expected to proceed swiftly. Amid growing emphasis on public-private cooperation to prevent investment fraud, reporting obligations for suspicious transactions by cryptocurrency exchanges and financial institutions are expected to be further strengthened. Law enforcement authorities remain firm in their policy to eradicate illegal asset concealment using virtual assets based on this case.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on it. The content should be interpreted solely for informational purposes.*
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