The Federal Court for the Central District of California has sentenced Daren Li to 20 years in prison. Li, a dual citizen of China and St. Kitts and Nevis, was found guilty of orchestrating a money laundering scheme involving over $73 M. The defendant received the maximum statutory sentence, despite being a fugitive since December 2025.
The Pig Butchering Tactic
The investigation established that Li led a group of at least eight accomplices. The criminals utilized social engineering tactics known as “pig butchering.” They targeted victims on social media and dating apps, cultivated trusting romantic or business relationships, and subsequently persuaded them to invest large sums in cryptocurrency.
To execute the scheme, the scammers created a network of phishing sites and fake trading platforms with interfaces that mimicked legitimate crypto exchanges. Victims saw fake profits on their screens, prompting them to transfer new tranches of funds.
The Laundering Scheme
According to court documents, victims transferred at least $73.6 M to accounts controlled by the criminal group. Of this amount, $59.8 M flowed through a network of US shell companies created specifically to launder criminal proceeds.
Li pleaded guilty to conspiracy to commit money laundering back in November 2024. Court filings confirm he acted knowingly, understanding the illicit nature of the funds and intentionally concealing their source, location, and control. His actions were classified as a violation of Title 18 of the US Code — conspiracy and money laundering.
The Escape
The US Department of Justice reported that Li severed his electronic tracking ankle monitor and fled. Assistant Attorney General A. Tysen Duva stated that the agency is working with international law enforcement partners to return the convict to the United States.
“The severe sentence reflects the gravity of Li’s conduct, which caused devastating financial losses to victims throughout our country,” Duva emphasized.
In addition to the prison term, the court ordered three years of supervised release. Eight of Li’s co-conspirators have also pleaded guilty and are awaiting sentencing. The investigation is being led by the US Secret Service and Homeland Security Investigations.
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