Millions of dollars were transferred by the con artists to these American bank accounts, which were subsequently used to launder the money that was obtained illegally. Two people were detained by US authorities on suspicion of organising a money laundering conspiracy that involves transferring over $73 million through US financial institutions and finally turning the money into Tether.
The Justice Department said on Friday that Yicheng Zhang, 38, was arrested in Los Angeles on Thursday and Daren Li, 41, was detained at the airport in Atlanta on April 12.
Their alleged roles in the plan were revealed on Thursday when an indictment accusing the two was unsealed in a California court. According to reports, Li, Zhang, and their allies oversaw a global criminal network that allegedly laundered millions of dollars from “pig butchering” cryptocurrency schemes, in which con artists win over their victims by convincing them to make substantial investments before making off with the money.
Co-conspirators claim that the defendants gave them instructions to open US bank accounts under the names of shell corporations. Millions of dollars were transferred by the con artists to these American bank accounts, which were subsequently used to launder the money that was obtained illegally.
The Department of Justice claims that the funds were then transferred to a number of local and foreign bank accounts. The DOJ declared, Over $73 million was used in the fraudulent plan to launder money through American financial institutions, bank accounts in the Bahamas, and the virtual asset USDT, also known as Tether.
More than $341 million in virtual assets were transferred to a bitcoin wallet that was part of the scam. Six counts of international money laundering and a conspiracy to launder money are brought against Daren Li and Yicheng Zhang. Should they are found guilty, their maximum sentence for each offence would be twenty years in jail, for a possible total of 140 years.
In a statement, Lisa Monaco, the deputy attorney general, recognised the difficulties caused by bitcoin fraud but reaffirmed her determination to holding those responsible for it. Scams involving pig butchering have grown profitable for cybercriminals. The US Department of Justice confiscated $9 million in November 2023 from a fraud that exploited over 70 US individuals. Legislators and authorities have become increasingly concerned about this kind of scam in recent months due to its increasing regularity and severity.
Authorities are working harder to stop cryptocurrency frauds and similar events in the industry. Authorities have implemented industry standards and developed rules that reflect this. Although initiatives to safeguard investors and maintain digital assets are praised, certain restrictions may prove to be a roadblock to the industry’s