DOJ has arrested two individuals for money laundering. Authorities accused the suspects of laundering $73 million through American financial institutions.

 The prosecutors noted that the suspects used creative tactics to launder the illicit funds. A portion of the $73 million was converted to Tether (USDT), while the rest was transferred through banks. 

A court filing submitted to the California court revealed that Daren Li and Yicheng Zhang engaged in unlawful activities. Daren was arrested at Atlanta Airport, and Zhang was apprehended in Los Angeles. 

Prosecutors claimed Li and Zhang were among the organizers of an “international syndicate” laundering millions of dollars. The authorities also accused the two suspects of orchestrating crypto investment scams that caused substantial losses to hundreds. 

The prosecutors noted that Li and Zhang used a pig butchering scam to launder their multimillion dollars. A pig butchering scam is a creative approach criminals use to lure potential customers to their fraudulent schemes.

Firstly, the criminals establish a strong relationship with the victims to gain their trust before convincing them to invest in a project that will generate profit. The prosecutors noted that Li and Zhang deceived customers into opening US bank accounts, which they later used to launder the illicit funds. 

Rise of crypto scams

The probing team noted that Zhang and Li sent the funds to other local and international bank accounts. The arrest of the two suspects coincides with the regulator’s intensive efforts to address pig butchering scams.  

According to the Department of Justice (DOJ), the two suspects operated a fraudulent scheme that involved the transfer of $73 million in illicit funds. The DOJ prosecutors noted that the criminals laundered the funds to American financial institutions through a bank account registered in The Bahamas. 

After investigating the incident, the DOJ observed that one wallet used by the criminals received $341 million worth of crypto. 

Verdict and community response

The DOJ charged the two with conspiracy to commit money laundering and other criminal accounts for breaching the existing anti-money laundering regulations. The prosecutor anticipates that the two Chinese nationals will receive 20 years of imprisonment for each criminal account. 

A statement from Deputy Attorney General Lisa Monaco revealed that criminals are defrauding investors by using virtual assets and online communication platforms. 

Citing the decentralized nature of crypto assets, the executive noted that criminals use various methods to defraud the public. Monaco also lamented that criminals are advancing their skills to conceal their unlawful activities. 

Monaco assured the public. Regardless of the criminals’ methods, law enforcers will bring them to justice.

Also read: Ripple and MFS Africa Partner to Boost XRP Use in Africa