Yicheng Zhang : “Two Arrested for $73 Million Cryptocurrency Laundering”

Accident – Death – Obituary News : : 1. Cryptocurrency money laundering
2. Alleged crypto scam arrests

Two individuals, Yicheng Zhang and Daren Li, were arrested for their involvement in laundering over $73 million through cryptocurrency investment scams. The scheme, known as “pig butchering,” involved convincing victims to invest in fraudulent cryptocurrency schemes before stealing their assets. The suspects set up shell companies to launder the funds, transferring the money to overseas bank accounts and cryptocurrency platforms to conceal its origin. The duo allegedly laundered the money into USDT cryptocurrency and sent it to virtual wallets. Both Zhang and Li face charges of conspiracy to commit money laundering and international money laundering, with each count carrying a maximum sentence of 20 years in prison if convicted. The case is under investigation by the U.S. Secret Service’s Global Investigative Operations Center. Victims of cryptocurrency investment fraud are encouraged to report it online at IC3.gov.

Two Arrested for Money Laundering in Cryptocurrency Investment Scam

In a recent development, two individuals have been apprehended for their involvement in a money laundering scheme that saw over $73 million being illegally funneled through cryptocurrency investment scams. The suspects, identified as Yicheng Zhang, 38, from Temple City, and Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, were allegedly key players in managing an international syndicate that specialized in laundering money from fraudulent cryptocurrency schemes.

The Nature of the Scam

Known as “pig butchering,” this type of scam typically involves scammers gaining the trust of victims before convincing them to invest in a phony cryptocurrency venture. Victims are often coerced into making additional payments, only to realize later that they have fallen prey to fraud. The actual “butchering” occurs when the criminals abscond with the victim’s assets or funds. These perpetrators are usually based overseas, making it challenging to track them down.

Modus Operandi

Li and Zhang’s victims were persuaded to transfer millions of dollars into U.S. bank accounts held under the names of shell companies. These companies were solely set up to facilitate the laundering of fraud proceeds. Once the victims transferred the money, the duo oversaw lower-level co-conspirators who moved the funds overseas into accounts at Deltec Bank in The Bahamas, as well as other domestic and foreign accounts and cryptocurrency platforms to obscure the money’s origins.

Extent of Money Laundering

Through this elaborate scheme, Li and Zhang managed to launder a staggering $73 million. The ill-gotten funds were then converted into the cryptocurrency USDT, also known as Tether, and transferred to virtual asset wallets. One such wallet associated with the scam received over $341 million in virtual assets, according to investigators.

Legal Ramifications

Both individuals have been charged with conspiracy to commit money laundering and six counts of international money laundering. If found guilty, they could face up to 20 years in prison for each count. Zhang has pleaded not guilty to the charges and is currently in federal custody awaiting further legal proceedings. Li, on the other hand, has been ordered detained without bond and is scheduled for arraignment.

Law Enforcement Response

U.S. Attorney Martin Estrada emphasized the gravity of financial scams like these, urging the public to educate themselves on the dangers of such fraudulent activities. The case is being investigated by the U.S. Secret Service’s Global Investigative Operations Center, underscoring the government’s commitment to combatting financial crimes.

Reporting Fraud

Individuals who suspect they have been victims of cryptocurrency investment fraud are encouraged to report it online at IC3.gov. When filing a report, it is essential to provide detailed information such as names of investment platforms, cryptocurrency addresses, transaction hashes, bank account details, and contact information of suspected scammers. Keeping records of all communications with scammers and financial transactions is also crucial.

Stay vigilant and protect yourself against financial fraud schemes.