The U.S. Department of Justice (DOJ) has arrested two Chinese nationals, Daren Li and Yicheng Zhang, for orchestrating a massive "pig butchering" crypto scam, laundering at least $73 million. The arrests underline the persistent threat of such scams in the crypto industry.
Li was apprehended on April 12 at Hartsfield-Jackson Atlanta International Airport, while Zhang was arrested in Los Angeles. They managed an international syndicate that used shell companies to launder money. Their scheme involved converting stolen funds into USDT stablecoin, with over $341 million in virtual assets linked to their operations.
The DOJ's investigation revealed extensive coordination, including chats discussing their network's commission structure and shell companies used. Li and Zhang face charges of conspiracy to commit money laundering and international money laundering, each carrying a maximum penalty of 20 years in prison.
Assistant Director of Investigations Brian Lambert highlighted the threat such complex financial fraud schemes pose to the U.S. financial infrastructure, reflecting data from the FBI's 2023 Internet Crime Report. Losses from investment scams rose from $3.31 billion in 2022 to $4.57 billion in 2023, emphasizing the growing impact of these crimes.
Pig butchering scams involve fraudsters creating fake identities to build relationships with victims, gradually introducing cryptocurrency investments and draining their funds. This method, resembling fattening a pig before slaughter, has become increasingly common, particularly in regions like Southeast Asia.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
