Crypto Scammer Pleads Guilty in $73 Million “Pig Butchering” Fraud

Daren Li, a 41-year-old dual citizen of China and St. Kitts and Nevis, has pleaded guilty to conspiracy to commit money laundering connected to a massive cryptocurrency fraud scheme. Known as a “pig butchering” scam, the scheme lured unsuspecting victims into fake digital currency investments, ultimately defrauding them of approximately $73.6 million, as reported by the U.S. Department of Justice (DOJ).

The scam, one of the largest of its kind, used a tactic where Li and his accomplices built trust with victims over time. Typically, “pig butchering” scams begin with scammers forming what seem to be genuine relationships online, sometimes posing as romantic interests or friends. After establishing trust, they persuade victims to invest significant sums into fictitious ventures, only to vanish with the funds. In this case, authorities reported that much of the stolen money ended up with transnational criminal organisations in countries like Myanmar and Cambodia, where trafficked individuals were allegedly forced into labour to further these schemes.

Li orchestrated this operation from outside the United States, relying on a network of accomplices to open U.S. bank accounts under fake business names. Once funds were transferred from victims, they were quickly converted to the stablecoin Tether (USDT) and moved to cryptocurrency wallets controlled by Li‘s team, making the funds difficult to trace. Despite these efforts to remain hidden, Li was apprehended at Atlanta’s Hartsfield-Jackson International Airport in April and now faces sentencing in California on 3 March 2025. He could face up to 20 years in prison.

This case underscores the vulnerabilities of the cryptocurrency market, where anonymity and global reach provide an attractive setting for fraud. The DOJ and other authorities warn that the rising sophistication of these scams, often linked to international crime rings, makes them particularly challenging to investigate, leaving victims with little hope of recovering their lost investments.

To protect themselves, potential investors are encouraged to use tools like WikiFX, which offers detailed insights on brokers, including regulatory status and customer reviews. By providing essential information, risk alerts, and safety ratings, platforms like WikiFX empower investors to verify the legitimacy of any investment platform before committing their funds. With these tools, investors can reduce the risk of falling prey to sophisticated scams.