Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

US arrests two Chinese nationals in $73 million crypto scam

Published 05/17/2024, 04:52 PM
Updated 05/17/2024, 04:57 PM
© Reuters. FILE PHOTO: A U.S. Justice Department logo or seal showing Justice Department headquarters, known as "Main Justice," is seen behind the podium in the Department's headquarters briefing room before a news conference with the Attorney General in Washington,

(Reuters) - U.S. authorities charged two Chinese nationals in a cryptocurrency scam that laundered at least $73 million from defrauded victims, the Justice Department said on Friday.

U.S. officials arrested Yicheng Zhang in Los Angeles on Thursday, according to an indictment unsealed in U.S. District Court in California's central district later that day. Daren Li, a dual citizen of China and St. Kitts and Nevis, was arrested at the Atlanta airport in April.

The U.S. accused the two of being involved in a type of cryptocurrency investment scam known as pig butchering, which has become a global billion-dollar industry.

The defendants are alleged to have instructed co-conspirators to open U.S. bank accounts in the name of shell companies.

Victims were induced online into depositing money into these accounts - funds that were then laundered through U.S. financial institutions to bank accounts in the Bahamas.

© Reuters. FILE PHOTO: A U.S. Justice Department logo or seal showing Justice Department headquarters, known as

"While fraud in the crypto markets takes on many forms and hides in many far-off places, its perpetrators aren't beyond the law's reach," U.S. Deputy Attorney General Lisa Monaco said in a statement.

Li and Zhang are both charged with conspiracy to commit money laundering and six counts of international money laundering. If convicted, the defendants face a maximum of 20 years in prison on each count, the Justice Department said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.