Darren Li, a 41-year-old dual citizen of China and Saint Kitts and Nevis, pleaded guilty to one count of conspiracy to commit money laundering using cryptocurrencies. The charge involves a complex scheme that allegedly laundered millions of dollars associated with cryptocurrency investment scams.
US Department of Justicein A press release Uploaded on November 12, he declared that Lee and his co-conspirators had done so It moved more than $73 million through a network of shell companies and bank accounts around the world.
Mechanics of a money laundering scheme
According to court documents, Lee admitted to collaborating with associates to launder money extracted from unsuspecting victims via cryptocurrency scams.
To conceal the movement of funds, Lee and his co-conspirators used encrypted communication channels and set up bank accounts in the United States under the guise of shell companies.
This process aims to conceal the origin, ownership and intended use of fraudulently acquired funds. Lee was reportedly monitoring incoming transfers, facilitating their conversion into virtual currencies, such as Tether (USDT), and overseeing their further distribution via cryptocurrency wallets under his control.
Additionally, court documents revealed that a significant portion of the victims’ funds, totaling more than $73.6 million, flowed directly into bank accounts linked to Lee and his co-conspirators.
Of this amount, at least $59.8 million was deposited from US-based shell companies laundering the illicit proceeds.
According to the statement released by the Department of Justice, the scheme was designed to defraud unsuspecting investors through cryptocurrency-related scams, with Lee playing a pivotal role in managing and transferring the funds involved.
U.S. Attorney Martin Estrada for the Central District of California emphasized the significant damage caused by financial criminals, noting that their actions often leave a trail of financial ruin. The American lawyer added:
Investors should be diligent and wary of anyone offering quick riches through new and exotic investments. A healthy dose of skepticism can prevent future financial ruin.
Collaboration behind the bust
As reported by the Department of Justice, the US Secret Service’s Global Investigative Operations Center is leading the investigation, with assistance from agencies such as Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, and several other state and international agencies. Local law enforcement partners.
Furthermore, the Department of Justice revealed that Lee’s sentencing is scheduled for March 3, 2025, with a maximum sentence of 20 years in prison. In addition, the federal court judge overseeing the case will consider multiple factors, including U.S. sentencing guidelines, before issuing a final ruling.
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