- Daren Li sentenced to 20 years for massive crypto fraud.
- Authorities intensify efforts to capture fugitive crypto fraudster Daren Li.
- $73.6 million stolen in complex cryptocurrency scam led by Li.
Daren Li, a 42-year-old dual citizen of China and St. Kitts and Nevis, was sentenced to 20 years in prison after his involvement in a massive cryptocurrency fraud and money laundering scheme that defrauded victims of at least $73.6 million. A federal judge in the Central District of California handed down the sentence following Li’s guilty plea in November 2024, where he admitted to managing the flow of stolen funds through a web of complex financial accounts.
Li’s Role in Laundering Millions Through Shell Companies
According to prosecutors, Li played a central role in directing the funds through U.S.-based shell companies. These companies helped launder approximately $59.8 million, about 81% of the total stolen amount, by converting fiat currency into virtual assets. Li personally oversaw the opening of bank accounts used for this illicit activity, making it difficult for authorities to trace the stolen money.
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Victims of this scheme were lured through social media, phone calls, and even dating services, where the perpetrators built either romantic or professional relationships. They instructed victims to invest money into fake trading platforms or pay technical support fees, which ultimately led to millions of dollars being funneled into Li’s network.
Ongoing Efforts to Capture Li and Close the Case
Despite his conviction, Li remains at large after fleeing federal custody in December 2025. Authorities have been working with international law enforcement to locate him and secure his return to the United States. Although Li is the first individual sentenced for his role in the operation, eight other co-conspirators have already entered guilty pleas.
Li’s escape only adds to the complexity of this high-profile case. Federal officials are intensifying their efforts to track him down, stressing that his flight will not stop the investigation. This case has drawn attention to the growing risks of cryptocurrency scams and the need for enhanced international cooperation in tackling financial crime.
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