On February 10, the U.S. Department of Justice announced that 42-year-old Daren Li, holding dual citizenship in China and Saint Kitts and Nevis, was sentenced in absentia by the U.S. Central District of California Federal Court for his role in a global crypto investment scam involving over $73 million. Li received the maximum statutory sentence of 20 years imprisonment, plus 3 years of supervised release.
The DOJ reported that Li pleaded guilty in November 2024, admitting participation in a Cambodia-based transnational crypto investment and money laundering scheme, but absconded in December 2025 after removing his electronic monitoring anklet and remains at large.
Modus Operandi
Prosecutors disclosed that the scam group targeted victims via social media, phone calls, text messages, and online dating platforms, establishing “professional or romantic relationships” to gain trust. Victims were then lured into fake crypto trading platforms and phishing websites to invest in nonexistent projects. In some cases, perpetrators impersonated customer support or tech personnel, claiming to “remove viruses” to induce victims to transfer or move crypto assets.
According to the plea agreement, Li and accomplices caused at least $73.6 million in losses, of which $59.8 million was laundered through U.S. shell company accounts and converted into crypto to obscure the source and flow of funds. Li was directly involved in receiving and controlling the victim funds.
Compliance Significance of KYT Tools
In the context of frequent cross-border crypto scams, the importance of on-chain monitoring and transaction screening tools such as Trustformer KYT has become increasingly evident. By real-time detection of abnormal transaction patterns, fund flows, and money laundering risks, institutions can identify potential fraudulent activity earlier, ensure transaction compliance, and mitigate loss exposure.
Investigation and International Cooperation
To date, eight co-conspirators have pleaded guilty, and Li is the first defendant sentenced for directly receiving stolen funds. The case is led by the U.S. Secret Service, with assistance from multiple international law enforcement agencies. The DOJ emphasized that international cooperation will continue, aiming to extradite Li to the U.S. to serve his sentence.