Man sentenced to 20 years for role in $74 million crypto investment fraud

A federal judge in the Central District of California on Monday sentenced Daren Li to the statutory maximum of 20 years in prison for his role in a cryptocurrency investment fraud and money laundering conspiracy that stole at least $73.6 million from victims.

Li, a 42-year-old dual citizen of China and St. Kitts and Nevis, remains at large after fleeing federal custody in December 2025, prosecutors said in a statement. 

According to court records cited in the statement, Li pleaded guilty in November 2024 to one count of conspiracy to commit money laundering. In his plea agreement, he admitted to managing the flow of victim funds through a sophisticated network of domestic and international financial accounts.

Li told prosecutors that his co-conspirators contacted U.S. victims through social media, phone calls, messages, and dating services to establish professional or romantic relationships. They used encrypted messaging applications for communication.

These individuals directed victims to deposit funds into fraudulent trading platforms or wire money under the guise of technical support fees, resulting in at least $73.6 million being deposited into accounts controlled by the syndicate, according to the statement. 

Of that total, Li admitted that approximately $59.8 million, representing about 81% of the loot, was processed through U.S.-based shell companies. Prosecutors stated that Li personally supervised the opening of these bank accounts and monitored the conversion of fiat currency into virtual assets to obscure the audit trail.

Per the statement, while eight other co-conspirators have entered guilty pleas in connection with the investigation, Li is the first to be sentenced among those directly responsible for the final receipt of funds. 

Assistant Attorney General A. Tysen Duva said federal authorities are coordinating with international partners to secure Li’s return to the United States.