The U.S. Department of Justice (DOJ) has filed charges against two Chinese individuals for allegedly operating a cryptocurrency scam centered around pig butchering and laundering tens of millions of dollars.
According to a recent press release from the DOJ, Daren Li and Yicheng Zhang, both Chinese citizens, were the masterminds behind the pig butchering scam. The scam involved sending unsolicited messages to individuals in order to establish a relationship and eventually introduce them to fraudulent cryptocurrency “investment opportunities.”
The duo would persuade victims with promises of significant returns, convincing them to open bank accounts under the names of shell companies and deposit money into them. The funds would then be transferred to a bank in the Bahamas and converted into USDT, the largest stablecoin in the market.
Prosecutors claim that Li and Zhang laundered $73 million, and the crypto wallet associated with the scam received over $340 million worth of digital assets.
U.S. Attorney Martin Estrada stated, “Sophisticated financial scams like these pose a significant threat to the financial well-being of all Americans. While my office will continue to uncover and punish these deceptive schemes, I urge everyone to educate themselves about pig butchering and other forms of financial fraud to safeguard their families from such predatory activities. Vigilance is crucial.”
Li and Zhang have been charged with conspiracy to commit money laundering, as well as six counts of international money laundering. If convicted, they could face up to 20 years in prison for each count.
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