Recent reports revealed that the US authority has arrested two individuals for allegedly orchestrating a $73 million crypto scam. The stolen funds, accumulated through defrauding traders, have been converted into Tether.
According to the official post of the US Department of Justice (DoJ), the Chinese nationals Yicheng Zhang and Daren Li were arrested for reportedly running a transitional criminal network through which they laundered millions of illegal funds. They were part of ‘pig butchering’ crypto scams that allowed the fraudsters to gain millions by convincing victims to invest.
Deputy Attorney General Lisa Monaco asserted that crypto scams exploit the “borderless nature of virtual currency and online communications to defraud victims.” The Attorney General added, “Today, we announce the arrests of two foreign nationals charged for leading a scheme to launder funds to the tune of at least $73 million tied to an international crypto investment scam.”
Meanwhile, Principal Deputy Assistant Attorney General Nicole M. Argentieri shared insights on the cryptocurrency investment scams that drained millions of investor funds. Further, providing a general view of crypto scams and money laundering, he commented,
As alleged in the indictment, Li and Zhang helped launder millions of dollars obtained from victims of cryptocurrency investment scams…Money laundering is critical to the success of these scams, allowing fraudsters to quickly move illicit proceeds and try to make them appear legitimate.
As per DoJ’s public statement, Li and Zhang are alleged of conspiracy to commit money laundering, in addition to six other charges on international money laundering. The department stated that the alleged would face up to 20 years in prison on each count.
The individuals reportedly instructed co-conspirators to open bank accounts in the names of various shell companies. By convicting victims to transfer funds into these accounts, the scammers were able to steal the funds and later launder them.
