A man with dual citizenship in China and St. Kitts and Nevis received a 20-year prison sentence for his central role in a sophisticated international cryptocurrency investment fraud—a scheme commonly known as “pig butchering” or “romance baiting”—that bilked victims out of more than $73 million.
The Anatomy of a Pig Butchering Scam
Pig butchering scams rely on building trust over time before exploiting victims through fraudulent investment opportunities.
These scams, known as pig butchering, involve criminals cultivating relationships with targets through messaging apps, dating sites, and social media. They slowly gain the victim’s confidence before introducing fake investment schemes, ultimately draining their cryptocurrency wallets instead of delivering promised returns.
Daren Li, 42, pleaded guilty in November 2024 to conspiracy to launder funds stemming from these “pig butchering” operations, which originated in Cambodia. His arrest occurred in April 2024 at Hartsfield-Jackson Atlanta International Airport.
However, Li fled in December 2025, removing his ankle monitor and becoming a fugitive before his scheduled sentencing in California federal court. He received a 20-year prison sentence, followed by three years of supervised release.
“As part of an international cryptocurrency investment scam, Daren Li and his co-conspirators laundered over $73 million dollars stolen from American victims,” said Assistant Attorney General A. Tysen Duva of the Criminal Division. “The Court’s sentence reflects the gravity of Li’s conduct, which caused devastating losses to victims throughout our country.”
A Network of Shell Companies and Cryptocurrency
Court records show that Li and his associates operated as part of an international criminal organization. They used a network of money launderers to funnel stolen funds—totaling millions—into approximately 74 shell companies with U.S. bank accounts. These funds were then transferred to both domestic and international accounts, as well as cryptocurrency platforms, to obscure their origins.
Li directed accomplices to establish bank accounts and transfer over $73 million to Deltec Bank in the Bahamas for conversion into cryptocurrency, including Tether. Investigators also uncovered more than $341 million in cryptocurrency within a single wallet used by the laundering ring.
Li is the first defendant directly involved in receiving victim funds to be sentenced; eight co-conspirators have also pleaded guilty. Five of those co-conspirators pleaded guilty to laundering $36 million stolen in investment scams.
In a related case, the Justice Department charged four additional suspects in December with involvement in another pig butchering scheme linked to over $80 million in losses.
Rising Investment Scam Losses
The FBI’s 2024 Internet Crime Report revealed that investment scams resulted in over $6.5 billion in losses from 47,919 victims—a significant increase from the $4.57 billion stolen in 2023.
What is “pig butchering”? This scam involves building a false relationship with a victim, gaining their trust, and then convincing them to invest in fraudulent schemes, ultimately stealing their money.
