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Polskie Stowarzyszenie Bitcoin

Chinese laundered millions of dollars in the USA – stable cryptocurrency in the spotlight


Money Laundering Scandal in the United States – Chinese Citizens Arrested

The United States Department of Justice has launched an investigation into the laundering of approximately 73 million dollars by two Chinese citizens. Daren Li, a dual citizen of China and Saint Kitts and Nevis, and Yicheng Zhang, a Chinese citizen residing in California, have been arrested for their involvement in a sophisticated money laundering operation.

Money Laundering Schemes Involving USDT Stablecoin

The accused individuals transferred illicit funds through various financial institutions in the United States and then converted them into the stable cryptocurrency USDT. Li and Zhang, along with other accomplices, utilized different schemes, including “pig butchering” fraud, to launder money obtained from cryptocurrency-related crimes.

Money Laundering Operation and Vanishing Investments

Money laundering schemes, such as “pig butchering,” involve gaining the trust of victims by encouraging them to invest and then absconding with the acquired funds. Li and Zhang persuaded victims to transfer millions of dollars to multiple fictitious companies controlled by their associates, and then transferred the money to various bank accounts both domestically and abroad.

Arrest and Charges

Daren Li was apprehended at the airport in Atlanta, and Yicheng Zhang was caught in Los Angeles. Both now face charges of money laundering and conspiracy. If convicted, they could face up to 20 years in prison for each accusation.

USDT Stablecoin at the Center of Operations

Investigators identified numerous accounts at Deltec Bank in the Bahamas that were used to convert criminal funds into USDT. This stable cryptocurrency has become a popular choice for fraudsters in conducting money laundering operations, and the associated cryptocurrency wallet amassed over 341 million dollars in virtual assets.

“Pig Butchering” Frauds Estimated in Billions of Dollars

“Pig butchering” frauds yield massive profits for perpetrators, estimated at over 75 billion dollars annually. The Department of Justice has previously intervened in similar crimes, blocking millions of dollars stolen through such schemes. The scale of the issue remains significant, and law enforcement agencies are striving to effectively combat money laundering in the cryptocurrency environment.