US DOJ Charges Two Chinese Citizens in $73 Million Crypto Scam

The United States Department of Justice (DOJ) has charged two Chinese nationals involved in a $73 million crypto scam. In a May 17 announcement, the DOJ explained recent developments in the case after the arrest of the suspects.

Daren Li, a citizen of China and St. Kitts and Nevis was arrested in April at the Atlanta airport while Yicheng Zhang was apprehended in Los Angeles on May 16, Reuters reported citing unsealed documents in the United States District Court. 

Both men are accused of defrauding victims up to $73 million in a pig butchering crypto scam model which has gained notoriety in recent months.

Defendants Could Face 20 Years on Each Count

According to the recent statement, the defendants are charged with conspiracy to commit money laundering in addition to six counts bordering on international money laundering. If found guilty, both men could face a potential 20 years in prison on each count. 

Lisa Monaco, the US Deputy Attorney General noted that bad actors who commit crypto fraud are not beyond the reach of authorities despite the ever-changing nature of crimes. “While fraud in the crypto markets takes on many forms and hides in many far-off space places, its perpetrators are not beyond the law’s reach.”

The defendants allegedly instructed co-conspirators to open US bank accounts through the companies while victims were told to transfer funds to these accounts. 

Crypto Scam: Regulators Mount Pressure 

Recently regulators have heightened efforts to curb crypto scam and related incidents in the market. This can be seen in proposed regulations and industry guidelines rolled out by authorities. While efforts are hailed to protect investors and preserve digital assets, some regulations could become a stumbling block to the sector’s development. 

A good example is the present regulatory uncertainty in the United States which has led to several lawsuits between the Securities and Exchange Commission (SEC) and crypto firms. 

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