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Chinese nationals charged with a $73M crypto scam


Chinese nationals charged with a 73M crypto scam

The U.S. Department of Justice (DoJ) has charged two arrested Chinese nationals with laundering $73 million through shell companies.

On April 12 and May 16, Daren Li, 41, and Yicheng Zhang, 38, were taken into custody in Atlanta and Los Angeles. Foreigners have been accused of spearheading a plot to launder at least $73 million connected to an international cryptocurrency investment scam, according to Deputy Attorney General Lisa Monaco.

Prosecutors have charged Li, Zhang, and their associates with leading a worldwide criminal organization that laundered funds acquired via bitcoin frauds. According to reports, victims of the fraud were duped into sending millions of dollars to bank accounts in the United States that were opened in the names of different shell businesses.

The DoJ stated that a group of money launderers helped move the funds to different bank accounts and cryptocurrency platforms. They did this in a way that hid where the funds came from and who owned and controlled them. It is believed that the money was laundered through US banks to Bahamas accounts, then converted into USDT or Tether and sent to cryptocurrency wallets, one of which is controlled by Li.

Lower-level co-conspirators were overseen by Li and Zhang, and their gains were transferred to Bahamas bank accounts at Deltec Bank. The unsealed indictment states that Zhang received victim payments directly, and Li assisted with the costs of at least one of the bank accounts. Six substantive accusations of international money laundering and conspiracy to commit money laundering have been brought against both of them. They may spend up to 20 years in jail if found guilty on each count.

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