Crypto faces DOJ scrutiny as Daren Li gets 20-year term

What to Know:

• Daren Li sentenced in absentia to 20 years for $73M crypto fraud
• Twenty-year term underscores scale of $73M transnational fraud case

According to Law360, Daren Li, a dual citizen of China and Saint Kitts and Nevis, was sentenced in absentia to 20 years in federal prison and three years of supervised release for his role in a “pig-butchering” crypto scheme that drained about $73 million from Americans. The case centers on a large-scale confidence fraud that used cryptocurrency and cross-border money flows to extract and conceal victim funds.

In-absentia sentencing means the court entered judgment without the defendant present. The length of the prison term, coupled with supervision after release, underscores how U.S. courts are treating the scale and impact of this fraud.

Why this 20-year sentence matters for pig-butchering crackdowns

The 20-year term sets a clear benchmark for the most damaging pig-butchering operations. Issuing sentence despite the defendant’s absence signals that evasion will not stall accountability and that judgments can await eventual apprehension.

According to the Justice Department, this outcome aligns with a broader campaign treating pig-butchering as organized transnational financial crime and pairing prosecutions with international cooperation and asset disruptions. “This sentence reflects the gravity of Li’s conduct, which caused devastating losses to victims throughout our country,” said Tysen Duva, Assistant Attorney General for the Criminal Division.

At the time of this writing, Coinbase Global (COIN) traded near $161 on Nasdaq real-time price data, reflecting a cautious digital-asset backdrop. Market context does not affect the criminal case but frames sentiment as enforcement actions continue.

How the $73M pig-butchering scam operated and laundered funds

As reported by Yahoo News, the scheme followed the classic pig-butchering playbook: scammers cultivated trust via social or romantic outreach, then funneled victims to fake trading portals. Operators used spoofed domains and shell companies and converted proceeds into stablecoins like USDT to move funds quickly across borders, complicating tracing and recovery.

According to The Cyber Express, Li pleaded guilty in November 2024 to conspiring to launder proceeds from cryptocurrency investment scams. That plea linked social engineering, counterfeit platforms, and cross-border money flows under a single laundering conspiracy framework.