The US arrested two Chinese nationals for $73 million.
US authorities have arrested Darren Li and Yicheng Zhang in connection with a $73 million money laundering scheme. The defendants deposited the funds into US and international bank accounts. The proceeds of the investment scam were converted into USDT stablecoin.
The United States Department of Justice has indicted two Chinese nationals for their role in the illegal laundering of $73 million in cryptocurrency investment schemes.
In an indictment released Thursday in the Central District of California, authorities arrested Darren Li, 41, on April 12 and Yicheng Zhang, 38, on May 16.
Li is a dual citizen of China and St. Kitts and Nevis, while Zhang is from the Temple City of California.
The defendants committed an international crypto investment fraud
Li, Zhang and others are suspected of being behind an international money laundering organization that defrauded victims of pork. Common crypto scams.
According to court documents, the suspects laundered funds from these crypto scams through the bank accounts of several shell companies.
According to the DOJ's Office of Public Affairs, more than $73 million was defrauded from victims and illegally deposited into US and international bank accounts. The illegally seized money found its way to the Bahamas and was converted into Tether (USDT).
“Cryptocurrency investment scams use borderless virtual currency and online communications to defraud victims,” US Deputy Attorney General Lisa Monaco said in a press release.
“While fraud in the crypto markets takes many forms and hides in many remote locations, criminals are not above the law. Today we are announcing the arrests of two foreign nationals accused of conspiring to launder at least $73 million in funds linked to an international crypto investment scam.
According to the court documents, a crypto wallet linked to the scam earned more than $341 million.
The DOJ charged Li and Zhang with money laundering and six counts of international money laundering. Each charge is punishable by up to 20 years in prison.
In November last year, the DOJ said it had seized $9 million in US dollars linked to international love and pork farming.
