A dual national of China and St. Kitts and Nevis, Daren Li, was sentenced in absentia to 20 years in federal prison for his involvement in a large-scale cryptocurrency investment scam that operated from Cambodia. The sentencing took place in Los Angeles by United States District Judge R. Gary Klausner, who will determine restitution at a later date.
Li, 42, became a fugitive after removing his ankle monitoring device and fleeing authorities in December 2025. He had pleaded guilty in November 2024 to conspiracy to commit money laundering.
“While technology has made it possible for people to quickly communicate with others who live oceans away, it also has made it easier for criminals to prey on innocent victims,” said First Assistant U.S. Attorney Bill Essayli. “I urge the investing public to use caution and to not talk to strangers…especially ones who solicit money online.”
“As part of an international cryptocurrency investment scam, Daren Li and his co-conspirators laundered over $73 million dollars stolen from American victims,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The Court’s sentence reflects the gravity of Li’s conduct, which caused devastating losses to victims throughout our country. The Criminal Division will work with our law enforcement partners around the world to ensure that Li is returned to the United States to serve his full sentence.”
According to court documents, members of the conspiracy contacted victims through unsolicited social media messages, phone calls, and online dating services. After gaining trust through professional or romantic relationships using encrypted messaging apps, they directed victims toward fake websites that appeared similar to legitimate cryptocurrency trading platforms.
In some cases, these co-conspirators convinced individuals to invest in fraudulent cryptocurrencies; in other instances, they posed as customer service or tech support representatives and persuaded victims into transferring funds under false pretenses related to computer issues.
Li admitted he and his associates deposited at least $73.6 million from victim funds into accounts linked with themselves or shell companies—$59.8 million came from U.S.-based entities set up for laundering purposes. To hide the origin and movement of these funds, Li instructed others on opening bank accounts under shell company names and oversaw transfers both domestically and internationally before converting proceeds into virtual currency.
Eight co-conspirators have already pleaded guilty; Li is the first among those directly involved with receiving victim funds to be sentenced.
The investigation was led by the U.S Secret Service Global Investigative Operations Center with assistance from Homeland Security Investigations’ El Camino Real Financial Crimes Task Force and several other agencies including Customs and Border Protection’s National Targeting Center and foreign law enforcement partners.
Prosecution was handled by Assistant United States Attorneys Nisha Chandran (Major Frauds Section), Maxwell Coll and Alexander Gorin (National Security Division), Trial Attorney Stefanie Schwartz (Computer Crime and Intellectual Property Section), and Trial Attorney Tamara Livshiz (Fraud Section).
This case forms part of ongoing efforts by the Justice Department’s Criminal Division—which works closely with U.S. Attorneys’ Offices nationwide—to disrupt global scam operations targeting Americans through cybercrime tactics such as cryptocurrency frauds official website. The division collaborates internationally via its network of prosecutors specializing in computer hacking cases.
Since 2020, more than 180 cybercriminals have been convicted through coordinated investigations led by CCIPS alongside domestic and international law enforcement agencies; over $350 million has been ordered returned to victims during this period.
The U.S. Attorney's Office for the Central District of California oversees criminal prosecutions like this one while supporting community outreach programs focused on victim assistance across seven counties serving more than 19 million residents official website. It works jointly with various levels of law enforcement agencies locally as well as federally official website.
Victims or those aware of digital asset investment fraud are encouraged to report incidents at IC3.gov.
