In the US, two Chinese citizens were arrested for defrauding crypto investors for $73 million

[Father]

The US Department of Justice announced the arrest of two Chinese citizens accused of laundering $73 million and leading a group of cryptocurrency scammers. Fraudsters converted the funds received from their victims into USDT stablecoins, American justice says.

Daren Lee was detained on April 12, 2024 at Hartsfield-Jackson Atlanta Airport, and Yicheng Zhang was detained on May 16 in Los Angeles. According to documents of the Ministry of Justice, the attackers fraudulently forced victims to transfer millions of dollars to the bank accounts of shell companies.

US Deputy Attorney General Lisa Monaco said that the funds received were transferred to international accounts of Deltec Bank in the Bahamas and cryptocurrency platforms.

"The crypto investment scam exploits the limitless nature of virtual currency and online communications to deceive victims. [ ... ] These arrests reflect the DOJ's continued commitment to disrupting the entire cybercrime ecosystem and stopping fraud in all financial markets," Deputy Attorney General Lisa Monaco said in a statement.

The crypto wallet used by fraudsters received over $341 million in cryptocurrency. The investigation insists that Daren Lee and Yichen Zhang managed to launder $73 million through shell companies.

The case is being investigated by the U.S. Secret Service's Center for Operational Investigative Operations, the Department of Justice's Office of International Affairs, and the El Camino Financial Crimes Task Force.

Those arrested were charged with conspiracy to launder funds, participating in an organized criminal group, and creating fictitious financial companies. If the perpetrators are found guilty, they face a long prison term.

Li and Zhang face up to 140 years in prison

• Source: https://www.justice.gov/opa/pr/two-...dering-least-73m-through-shell-companies-tied

 

[Man]

41-year-old Chinese citizen Daren Lee pleaded guilty to conspiracy to launder $73 million received from victims of cryptocurrency fraud. The money was converted into USDT stablecoins.

Attorney General Nicole Argentieri said Daren Li, who has dual citizenship in China as well as in St. Kitts and Nevis, used a network of shell companies. Lee acted with accomplices, corresponding with them through encrypted messaging services. To conceal the sources of the funds, Lee instructed accomplices to open U.S. bank accounts set up in the name of fictitious entities and to monitor international bank transfers with funds that came to these companies from defrauded victims. This illegally obtained money was converted into USDT stablecoins and then distributed to the cryptocurrency addresses of Lee and his accomplices.

Despite the fact that Lee was outside the United States, this did not prevent law enforcement from bringing him to justice, the prosecutor noted. The man was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport. The court is to sentence the violator on March 3, 2025. He faces a maximum sentence of 20 years in prison.

"We are cooperating with foreign law enforcement to bring to justice crypto scammers who violate the rights of Americans, wherever the criminals are. In turn, investors should be skeptical of dubious investments and get-rich-quick offers to avoid financial losses," the prosecutor said.

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