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Alleged cryptocurrency scammers arrested in ‘pig slaughter’ scheme.
The Department of Justice said this on Friday arrested two alleged scammers for laundering “at least” $73 million through shell companies linked to “pig slaughter” cryptocurrency investment schemes.
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In a pig slaughter scam, scammers contact victims online and gain their trust before manipulating them into investing in a fake cryptocurrency.
Daren Li, a 41-year-old dual citizen of China and St. Kitts and Nevis – residing in China, Cambodia and the United Arab Emirates, was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport. According to a statement from the Department of Justice, he was subsequently transported to the Central District of California. Yicheng Zhang, 38, a Chinese citizen and resident of Temple City, California, was arrested Thursday in Los Angeles, California, the statement said.
The Justice Department accused the individuals of tricking victims into depositing money into U.S. accounts. From there, the two allegedly used the conspirators to launder the money through U.S. financial institutions into Bahamian bank accounts, before converting the funds into the stablecoin Tether, also known as USDT.
“Cryptocurrency investment scams exploit the borderless nature of virtual currency and online communications to defraud victims,” She said US Deputy Attorney General Lisa Monaco. “Although fraud in cryptocurrency markets takes many forms and hides in many remote places, its perpetrators are not beyond the reach of the law,” he said
Li and Zhang are charged with conspiracy to commit money laundering and six counts of international money laundering. According to the Justice Department, if convicted, they could be sentenced to up to 20 years in prison on each charge.
Two days before announcing the arrests, the Department of Justice said so two brothers arrested for allegedly stealing “approximately $25 million worth of cryptocurrency in approximately 12 seconds.” And earlier this month, the department blamed “Bitcoin Jesus,” aka Roger Verevading nearly $50 million in taxes.