A US federal court has sentenced Daren Li, a dual national of China and St. Kitts and Nevis, to 20 years in prison for orchestrating a sprawling cryptocurrency fraud that drained more than $73 million from victims worldwide, many of them in the United States.

According to the US Department of Justice, the sentence — the statutory maximum — was handed down in the Central District of California and includes three years of supervised release. Li, 42, has been a fugitive since late 2025 after cutting off an electronic ankle monitor and fleeing authorities.

Prosecutors said Li led a network of at least eight co-conspirators who ran a classic “pig butchering” scheme, a form of long-con fraud in which scammers build trust with victims before persuading them to make increasingly large financial commitments. The group used spoofed websites and domains designed to mimic legitimate crypto trading platforms, giving victims the illusion of profitable investments.

Court records show that the operation often began on social media and dating apps, where scammers cultivated professional or romantic relationships. Once trust was established, victims were encouraged to transfer funds into accounts secretly controlled by the group.

Li admitted that the scheme extracted at least $73.6 million, including nearly $60 million funneled through US shell companies used to launder proceeds. Eight other defendants have pleaded guilty and are awaiting sentencing, while Li is the first to receive a prison term.

Assistant Attorney General A. Tysen Duva said the sentence reflects the scale of harm caused by the scheme and added that US authorities are working with international partners to secure Li’s return to custody to serve the full term.

The investigation remains ongoing and involves multiple agencies, including the US Secret Service’s Global Investigative Operations Center, Homeland Security Investigations and the US Marshals Service.

Crypto scams surge again in early 2026

Li’s sentencing comes as crypto-related fraud shows signs of resurgence. According to blockchain security firm CertiK, scammers stole roughly $370 million in January alone, the highest monthly total in nearly a year.

Phishing and social-engineering attacks accounted for the bulk of those losses, including a single incident in which a victim lost around $284 million. While the figure remains below the record losses seen during major exchange hacks, analysts say it highlights how trust-based scams continue to evolve alongside broader crypto adoption.

Source: CertiK