Crypto scam mastermind gets 20 years for $73M pig butchering scheme

A dual national of China and St. Kitts and Nevis has been sentenced to 20 years in US federal prison for orchestrating a global cryptocurrency scam that stole more than $73 million from victims, many of them American investors.

Forty-two-year-old Daren Li received the statutory maximum sentence in the Central District of California, along with three years of supervised release, according to a statement issued Tuesday by the US Department of Justice (DOJ).

Prosecutors said Li and at least eight co-conspirators established spoofed domains and websites resembling legitimate trading platforms to promote fraudulent crypto investments after gaining victims’ trust, a scheme known as pig butchering or phishing scams.

Court filings show the conspirators often initiated contact through social media platforms and dating apps, cultivating professional or romantic relationships before persuading victims to transfer funds into accounts controlled by the group.

“The Court’s sentence reflects the gravity of Li’s conduct, which caused devastating losses to victims throughout our country,” said Assistant Attorney General A. Tysen Duva, adding that authorities would “work with our law enforcement partners around the world to ensure that Li is returned to the United States to serve his full sentence.”

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Li is the first defendant to be sentenced. Eight other co-conspirators have pleaded guilty and await sentencing.

Li admitted that he and his co-conspirators tricked victims into transferring at least $73.6 million in funds to bank accounts associated with the defendants, including $59.8 million from US shell companies that laundered victim funds.

The sentencing comes more than a year after Li pleaded guilty to conspiring with others to launder funds obtained from victims through crypto scams and fraud, Cointelegraph reported in November 2024.

Daren Li admitted he helped associates launder millions in funds stolen through various crypto scams. Source: CourtListener

The investigation remains ongoing and is being led by the US Secret Service Global Investigative Operations Center, with assistance from Homeland Security Investigations’ El Camino Real Financial Crimes Task Force and the US Marshals Service, among other agencies.

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Crypto scams see resurgence at the start of 2026

Crypto scams and phishing incidents saw an uptick in January, when scammers stole $370 million, the highest monthly figure in 11 months, according to crypto security company CertiK.

Notably, $311 million of the total figure was attributed to phishing scams, after a victim lost around $284 million due to a particularly damaging social engineering scam.

Source: CertiK

The $370 million marked the largest monthly loss since February 2025, when attackers netted around $1.5 billion in total value stolen, with the majority due to the $1.4 billion Bybit exchange hack.

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