10th February, 2026 – Fugitive Daren Li, a dual citizen of China and St. Kitts and Nevis, has been sentenced in absentia to 20 years for a $73 million crypto scam. He ran a “pig-butchering” scheme, tricking victims through fake romantic relationships and fraudulent trading platforms before stealing their money. Arrested in 2024 but fleeing pretrial release in late 2025, Li laundered the stolen funds through shell companies and crypto wallets tied to Cambodian operations, highlighting the growing threat of international crypto fraud.
High Signal Summary For A Quick Glance
- The 20-year sentence signals stronger U.S. enforcement while leaving core blockchain mechanics unchanged.
- Li’s fugitive escape highlights monitoring gaps and crypto’s dual role in both enabling and exposing money laundering.
- Raises awareness of pig-butchering scams, pushing users to be more cautious and platforms to enhance AML defenses.
- Clear enforcement outcomes help mature the industry and could reduce fraud losses estimated in the billions annually.
- Retail traders: Face higher fraud risk from fake trading apps and social-engineering scams.
- Long-term holders: May encounter stricter KYC/AML rules affecting wallet privacy and transaction flows.
- Institutions: Banks and crypto firms must strengthen due diligence to avoid laundered funds and meet DOJ standards.
- Builders & ecosystem participants: Wallets, exchanges, and DeFi apps need better fraud detection, improving ecosystem safety.
Inside the Daren Li Crypto Scheme
Daren Li was sentenced to 20 years for his role in an international “pig butchering” crypto scam, which lured victims via social media to fake trading platforms. A dual citizen of China and St. Kitts and Nevis, Li was arrested in April 2024 at Atlanta airport, indicted in May with co-conspirator Yicheng Zhang, and pleaded guilty in November to laundering over $73 million through shell companies and crypto wallets in Cambodia.
The sentence, issued in absentia on February 9, 2026, followed Li’s escape in December 2025 after cutting his ankle monitor. Online discussions noted his fugitive status and the DOJ’s crackdown on Cambodian-linked crypto fraud.
Similar cases include the 2025 UK conviction of Zhimin Qian (Yadi Zhang) for a £5 billion Bitcoin scam (11-year sentences) and 2022 U.S. charges against a couple laundering $4.5 billion in Bitfinex Bitcoin. Outcomes often include hefty fines, prison terms, short-term market dips, and increased crypto compliance, fostering long-term ecosystem trust.
Key milestones in the international pig-butchering scam case involving Daren Li
Scheme initiated and expanded
Scammers build trust through social media and dating apps, directing victims to fraudulent crypto investment platforms.
Laundering network established
Li and co-conspirators funnel more than $73M through shell companies, U.S. bank accounts, and interconnected crypto wallets.
Victim count surpasses 500
More than 500 U.S. victims are defrauded, highlighting the international scale and coordination of the operation.
Initial arrest at Atlanta airport
Daren Li is arrested while attempting to board an international flight, marking the first major law enforcement breakthrough.
Laundering wallet activity halts
The primary wallet used for laundering funds becomes inactive, effectively freezing further large-scale transfers.
Investigation accelerates
Authorities link Li to Cambodian scam centers through Telegram communications and transaction tracing.
Co-conspirator detained
Yicheng Zhang is arrested in Los Angeles on charges of conspiracy to commit international money laundering.
Formal charges revealed
An indictment outlines six counts of international money laundering involving shell companies and Bahamian banks.
Public awareness spikes
Media coverage exposes the scale of pig-butchering scams, prompting renewed warnings from U.S. authorities.
Guilty plea entered
Li pleads guilty to laundering at least $73M, formally admitting to his role in the international scheme.
Cooperation details disclosed
Court filings reveal Li controlled transfers and managed wallets holding over $341M at peak balances.
Sentencing delayed
Li’s initial sentencing hearing is postponed due to developments following his guilty plea.
Ankle monitor removed and escape
Li cuts off his electronic monitor and flees, becoming a fugitive ahead of final sentencing.
International manhunt launched
Authorities initiate global efforts to locate and extradite Li following his disappearance.
Pretrial monitoring scrutinized
The escape intensifies criticism of electronic monitoring standards for international financial crime suspects.
Sentenced in absentia
Li receives the maximum sentence of 20 years in prison plus three years of supervised release, despite remaining at large.
Community Reactions on X
The news of Daren Li’s 20-year sentence went viral on X, with users highlighting his role in the $73 million pig-butchering scam and the U.S. court’s maximum penalty despite his fugitive status. Many praised the strong enforcement, using hashtags like #CryptoCrime and #fraud, while discussions also focused on broader crypto implications, such as targeting laundering networks and improving user protections. Overall, sentiment saw the ruling as a deterrent, though some noted the ongoing challenge of capturing fugitives like Li.
What to Read Next
- Su Jingliang’s Sentencing: Chinese national Su Jingliang got 46 months for laundering $36 million in a connected pig-butchering scam.
- TRM Labs on Cambodian Scam Hubs: Cambodia’s pig-butchering operations generate over $30 million daily, with $96 billion in crypto flows since 2021.
- California Man Convicted: A California resident was sentenced to 51 months for laundering $36.9 million from Cambodian scam centers.
- Pig-Butchering Trends: Learn how these scams work globally, their financial impact, and tips to avoid them.
