Fugitive Daren Li sentenced to 20 years in the U.S. for $73M international crypto scam

Sentencing in Absentia: Daren Li’s Role in a $73 Million Crypto Scam

 

A federal judge in California has sentenced Daren Li, a dual national of China and St. Kitts and Nevis, in absentia to 20 years in prison. This decision follows his involvement in an international cryptocurrency scam that swindled $73 million from victims. Despite this severe sentence, Li remains a fugitive, having removed his ankle electronic monitoring device in December, eluding law enforcement since then. Besides his prison term, he was also handed a three-year supervised release term for his role in this elaborate scheme, which was orchestrated from scam centers in Cambodia. This sentencing underscores the global nature of crypto crime and the challenges it poses to legal systems worldwide.

 

Cambodia: A Hotbed for Crypto Scams

 

Cambodia has emerged as a central node for "pig butchering" crypto scams, where unsuspecting victims are ruthlessly manipulated like livestock to maximize fraud profits. According to a TRM Labs report, these scams generate over $30 million daily, often perpetuated through forced labor compounds. From 2021, it is estimated that over $96 billion in cryptocurrency has channeled towards Cambodia-linked companies. These funds, frequently used for money laundering and fraud, highlight the scale and reach of crypto scams emanating from the region. The Cambodian scenario illustrates a sophisticated blend of cyber tactics with traditional fraud, underpinning a global network of crime.

 

The Modus Operandi of the Scam

 

Assistant Attorney General A. Tysen Duva describes the scam as an international cryptocurrency investment fraud, where Li and his associates laundered $73 million stolen primarily from American victims. These scammers employed advanced social engineering techniques to deceive victims, leveraging platforms that mimic legitimate crypto investment sites. Li admitted that he and his co-conspirators reached out to potential victims via unsolicited social media interactions, telephone calls, messages, and online dating services. By building either professional or romantic relationships, they gained the trust required to lure victims into investing in these deceptive platforms.

 

Social Engineering and Tech-Support Frauds

 

Li’s group also posed as tech-support staff to manipulate victims further. They convinced individuals there was a non-existent computer virus or problem, which required urgent remediation. Victims, convinced by the fraudulent urgency, sent funds via wire transfers or cryptocurrency trading platforms. These scams are a stark reminder of how cybercriminals exploit trust and play on fears to steal vast amounts of money, further emphasizing the vulnerabilities within the crypto landscape.

 

The Rising Threat of Crypto Scams

 

The prevalence of social engineering scams, including fake investment offers and impersonation tactics, has labelled them as the leading threats to cryptocurrency users. These scams have resulted in losses amounting to billions of dollars, accounting for nearly 41% of all crypto security incidents in 2025. The persistence and sophistication of these scams reveal the immense challenge for regulatory bodies and law enforcement who are racing against time to curb this tide of digital deception.

 

Global Law Enforcement Efforts

 

Efforts to locate and detain Daren Li are ongoing. Assistant Attorney General Duva emphasized the collaboration with global law enforcement to secure Li’s return to the U.S. to serve his full sentence. This collaboration underscores the necessity for international cooperation to combat cross-border cybercrimes effectively, as these crimes often surpass the jurisdictional confines of single nations, demanding a concerted worldwide effort.

 

Conclusion: Navigating the Complex Crypto Environment

 

This case exemplifies the complexities and dangers inherent within the cryptocurrency market. As the global financial ecosystem increasingly integrates digital currencies, the threat landscape concurrently expands. For investors and participants in the crypto market, heightened vigilance, education, and skepticism towards unsolicited offers are paramount to safeguard assets. For regulators and law enforcers, enhanced technological capabilities and international alliances are crucial to curtailing these cyber-criminal masters, ensuring that the appeal and integrity of cryptocurrency endure. In this digital age, understanding and navigating these complexities is essential for safeguarding financial interests and maintaining the trustworthiness of burgeoning markets.