The Department of Justice announced Friday. arrested Two fraudsters are suspected of laundering “at least” $73 million through shell companies involved in a “pig slaughter” cryptocurrency investment scheme.
In pig butchering scams, scammers contact victims online, gain their trust, and then manipulate them into investing in fake cryptocurrencies.
Darren Lee, 41, a dual citizen of China and St. Kitts and Nevis and a resident of China, Cambodia, and the United Arab Emirates, was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport. He was then transferred to the Central District of California, according to a statement from the Department of Justice. Yichen Zhang, 38, a Chinese national and resident of Temple City, California, was arrested Thursday in Los Angeles, California, according to a statement.
The Justice Department accused the individuals of luring the victims into depositing money into U.S. accounts. From there, the two allegedly used co-conspirators to launder funds through U.S. financial institutions into bank accounts in the Bahamas, which they then converted into the stablecoin Tether, also known as USDT.
“Cryptocurrency investment scams exploit the cross-border nature of virtual currencies and online communications to deceive their victims.” Said Lisa Monaco, Deputy Attorney General of the United States; “Fraud in the cryptocurrency market takes many forms and hides in many far-flung locations, but its perpetrators are not beyond the reach of the law.”
Mr. Li and Mr. Zhang are charged with conspiracy to commit money laundering and six counts of international money laundering. If convicted, each charge could carry up to 20 years in prison, according to the Justice Department.
Two days before announcing the arrest, the Justice Department said: two brothers arrested He is suspected of stealing approximately $25 million worth of virtual currency within approximately 12 seconds. And earlier this month, Police indict “Bitcoin Jesus” aka Roger Verevaded taxes of nearly $50 million.
