A United States federal court has sentenced Daren Li, a 42-year-old dual national of China and St. Kitts and Nevis, to 20 years in prison for orchestrating a massive global cryptocurrency investment fraud amounting to nearly ₹610 crore (approximately $73.6 million). However, before he could begin serving his sentence, Li fled in December 2025 after removing his electronic ankle monitor. He remains at large.
According to court records, Li pleaded guilty in November 2024 to conspiracy to launder funds obtained through fraudulent cryptocurrency investment schemes. Investigators described the operation as one of the largest recent “pig butchering” scams — a form of long-con fraud in which criminals cultivate emotional or professional relationships with victims before persuading them to make substantial financial investments.
The organised network was primarily operated from Cambodia, which has increasingly drawn international scrutiny as a hub for transnational cyber fraud operations. Victims were targeted through social media platforms, dating applications, unsolicited phone calls, and text messages. Fraudsters invested weeks or even months in building trust, posing as romantic partners, financial advisers, or successful crypto traders.
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Once trust was established, victims were directed to sophisticated fake cryptocurrency trading platforms designed to mimic legitimate exchanges. Initial investments often appeared profitable, as fabricated gains were displayed on the platforms to encourage larger deposits. In several cases, members of the racket also impersonated technical support executives, convincing victims to transfer funds to resolve fictitious technical issues.
Prosecutors stated that nearly ₹610 crore flowed into bank accounts controlled by Li and his associates. Of this amount, approximately ₹500 crore (around $60 million) was routed through US-based shell companies established specifically to conceal the origin of the funds. The money was subsequently converted into cryptocurrency, creating additional layers of complexity that hindered tracing and recovery efforts.
Eight co-conspirators have already pleaded guilty in connection with the case. Li was identified as the first defendant directly involved in receiving and transferring victim funds to be formally sentenced. Prosecutors urged the court to impose the maximum penalty, citing the devastating impact on victims, many of whom reportedly lost life savings, retirement funds, and long-term investments.
The investigation was led by the Global Investigative Operations Center of the US Secret Service, with assistance from other federal agencies. Authorities acknowledged that tackling such cross-border cybercrime operations requires stronger international coordination and faster information-sharing mechanisms.
The case underscores the industrial scale of modern cryptocurrency fraud. Investigators described a structured network resembling a corporate enterprise, involving recruiters, relationship managers, financial operators, and money-laundering specialists working in coordination. Shell corporations, layered bank transfers, and digital currency conversions formed a sophisticated pipeline for moving stolen funds across jurisdictions.
Although the court imposed a strict 20-year prison sentence, Li’s escape highlights the continuing challenges law enforcement agencies face in ensuring accountability in global cybercrime cases. US authorities are actively pursuing efforts to apprehend and extradite him to serve his sentence.
Cybersecurity experts have reiterated warnings to investors against unsolicited investment offers, especially those promising unusually high or guaranteed returns in cryptocurrency markets. They caution that online relationships and unfamiliar trading platforms should be independently verified before transferring funds.
While the sentencing sends a strong message against organised cryptocurrency fraud networks, authorities stress that dismantling such operations will require sustained global cooperation, enhanced regulatory oversight, and aggressive disruption of digital money-laundering infrastructure.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
