The Masterminds
The US Department of Justice (DOJ) has arrested two Chinese nationals, Daren Li (42) and Yicheng Zhang (38), for laundering $73 million in cryptocurrency scams known as “pig butchering.”
The Scam
In pig butchering scams, fraudsters trick victims into investing in fake cryptocurrency schemes. Once the investment is large, the scammers disappear with the funds.
The Money Trail
Li and Zhang managed a syndicate that laundered the proceeds of these scams. Victims transferred funds to shell company accounts in the US. The funds were then moved to international accounts, local accounts, and cryptocurrency exchanges to hide their origin.
Over $73 Million Laundered
Over $73 million was transferred to shell accounts in The Bahamas and converted into Tether (USDT). A cryptocurrency wallet also received over $341 million in virtual assets.
The Charges
Li and Zhang face charges of conspiracy to commit money laundering and six counts of international money laundering. They could face up to 20 years in prison per count if convicted.
The DOJ’s Commitment
Deputy Attorney General Lisa Monaco emphasized the DOJ’s commitment to disrupting cybercrime and preventing fraud in all financial markets.
Market Update
The total cryptocurrency market cap is currently around $2.366 trillion, up 8.05% in the past week.
