Daren Li has been sentenced to 20 years in prison for his role in a cryptocurrency fraud and money laundering operation that defrauded victims of at least $73.6 million. Li, a 42-year-old dual citizen of China and St. Kitts and Nevis, pleaded guilty in November 2024 and admitted that he managed the movement of stolen funds through a network of complex financial accounts.
Shell companies moved most of the stolen funds
Prosecutors said Li had a central role in directing money through U.S.-based shell companies. Those entities were used to launder about $59.8 million, or roughly 81% of the total amount stolen, by converting fiat currency into virtual assets. Li also personally oversaw the opening of bank accounts tied to the scheme. That made the money trail harder for investigators to follow.
Victims were approached through social media, phone calls, and dating services. The people behind the scheme built romantic or business relationships, then pushed victims to send money to fake trading platforms or pay supposed technical support fees. From there, millions of dollars were funneled into Li’s network.
Convicted, then fled federal custody
The case remains active because Li is still at large. According to the report, he fled federal custody in December 2025, and authorities are now working with international law enforcement to locate him and return him to the United States.
Li is the first person sentenced in the case, but he is not the only defendant implicated in the operation. Eight other co-conspirators have already entered guilty pleas. Federal officials said his escape will not stop the investigation, as the case continues to draw attention to the cross-border nature and tracing difficulties of large crypto fraud operations.