A federal judge in California has handed down a 20-year prison sentence to Daren Li for his role in a wide-ranging cryptocurrency investment fraud and money laundering scheme that defrauded victims of at least $73.6 million.
The sentence, issued Monday in the U.S. District Court for the Central District of California, represents the statutory maximum for Li’s offense. Prosecutors said the 42-year-old, who holds dual citizenship in China and St. Kitts and Nevis, remains a fugitive after fleeing federal custody in December 2025.
How the Scheme Worked
Court records show that Li pleaded guilty in November 2024 to one count of conspiracy to commit money laundering. As part of his plea agreement, he admitted to overseeing the movement of victim funds through a complex web of financial accounts spanning multiple countries.
According to prosecutors, the fraud relied heavily on personal manipulation. Co-conspirators approached victims through social media platforms, phone calls, text messages, and dating apps, often building trust through professional or romantic relationships. Communications were typically handled through encrypted messaging services.
Victims were then directed to send money to fake cryptocurrency trading platforms or to wire funds under the pretense of paying technical support or account fees. In total, at least $73.6 million was deposited into accounts controlled by the criminal network.
Laundering and Asset Conversion
Li acknowledged that roughly $59.8 million—about 81% of the stolen funds—was funneled through U.S.-based shell companies. Prosecutors said he personally supervised the creation of these accounts and tracked the conversion of traditional currency into digital assets, a process designed to make the money harder to trace.
While eight other individuals connected to the scheme have already pleaded guilty, Li is the first defendant directly tied to the final receipt and handling of the funds to receive a sentence.
Ongoing Efforts to Secure His Return
Despite the sentencing, Li remains outside U.S. custody. Assistant Attorney General A. Tysen Duva said authorities are working with international partners to locate Li and return him to the United States to serve his sentence.
A Cautionary Outcome
The case highlights how sophisticated crypto-related fraud schemes often combine social engineering with financial complexity to exploit victims across borders. As enforcement agencies continue to pursue those involved, the sentencing underscores the serious legal consequences tied to large-scale cryptocurrency fraud.
