Chinese Nationals Charged in $73 Million Pig Butchering Crypto Scam – U.S. DoJ Indicts Two Arrested Individuals

The U.S. Department of Justice (DoJ) has charged two Chinese nationals, Daren Li and Yicheng Zhang, for running a pig butchering scam that laundered over $73 million from victims through shell companies. The duo was arrested in Atlanta and Los Angeles in April and May, respectively.

According to Deputy Attorney General Lisa Monaco, the individuals are accused of leading a scheme to launder funds obtained through an international crypto investment scam. The prosecutors claim that Li, Zhang, and their co-conspirators managed a syndicate that laundered the funds acquired from cryptocurrency investment scams.

Victims were allegedly tricked into transferring millions of dollars to U.S. bank accounts under various shell companies’ names. These funds were then laundered through U.S. financial institutions to bank accounts in the Bahamas, later converted to USDT or Tether, and transferred to cryptocurrency wallets controlled by Li.

The two defendants have been charged with conspiracy to commit money laundering and multiple counts of international money laundering. If convicted, they could face up to 20 years in prison on each count.

This case sheds light on the rise of pig butchering scams, where fraudsters target individuals through messaging apps and social media, promising high returns on investments. The funds are then transferred to wallets controlled by the scammers. This incident follows previous crypto scams and highlights the need for vigilance in the rapidly evolving cryptocurrency markets.