Fugitive behind $73M ‘pig butchering’ scheme gets 20 years in prison

Cryptocurrency Scammer Daren Li Gets 20 Years in Absentia for $73 Million Pig Butchering Fraud

In a landmark ruling that underscores the growing threat of cryptocurrency investment scams, a dual Chinese and St. Kitts and Nevis national has been sentenced to 20 years in prison in absentia for orchestrating a massive international fraud scheme that defrauded victims of more than $73 million. Daren Li, 42, became a fugitive after cutting off his ankle monitor in December 2025, evading sentencing in a California federal court.

The case highlights the sophisticated and devastating nature of “pig butchering” scams, also known as romance baiting, where criminals exploit trust to lure victims into fraudulent cryptocurrency investments. These schemes, which have surged in recent years, have left thousands of Americans financially ruined and emotionally scarred.

The Anatomy of a Pig Butchering Scam

Pig butchering scams are a modern twist on age-old confidence tricks, leveraging the anonymity and complexity of cryptocurrency to defraud victims on an unprecedented scale. The scam begins innocuously, with criminals reaching out to potential targets through messaging apps, dating platforms, or social media. Over weeks or months, they build a relationship, often posing as successful investors or romantic interests.

Once trust is established, the scammer introduces the victim to a seemingly lucrative cryptocurrency investment opportunity. Victims are shown fabricated portfolios and promised extraordinary returns. However, instead of investing the funds, the scammers drain the victims’ cryptocurrency wallets, leaving them with nothing.

Daren Li’s Role in the $73 Million Scheme

Daren Li was a key player in an international crime syndicate that operated from centers in Cambodia. According to court documents, Li and his co-conspirators used a network of money launderers to move millions of dollars stolen from dozens of victims. The funds were funneled through U.S. bank accounts linked to approximately 74 shell companies before being transferred to domestic and international accounts and cryptocurrency platforms to obscure their origins.

Li instructed accomplices to open bank accounts and transfer over $73 million to Deltec Bank in the Bahamas, where the funds were converted into cryptocurrency, including Tether. Investigators also discovered more than $341 million in cryptocurrency in one of the wallets used by the fraud ring for money laundering.

Li pleaded guilty in November 2024 to conspiracy to launder funds obtained through pig butchering scams. However, he fled in December 2025 after cutting off his ankle monitor, becoming a fugitive before his sentencing. In addition to the 20-year prison sentence, he was also sentenced to three years of supervised release after serving his prison term.

A Broader Crackdown on Cryptocurrency Fraud

Li’s case is part of a broader effort by U.S. authorities to combat cryptocurrency fraud. The Justice Department has charged four additional suspects in December for their involvement in another pig butchering scheme linked to over $80 million in losses. So far, eight co-conspirators have pleaded guilty, with Li being the first directly involved in receiving victim funds to be sentenced.

The FBI’s 2024 Internet Crime Report revealed the staggering scale of investment scams, with criminals stealing over $6.5 billion from 47,919 victims, up from $4.57 billion in 2023. This surge highlights the urgent need for increased awareness and stronger regulatory measures to protect consumers from these sophisticated schemes.

The Human Cost of Cryptocurrency Scams

Behind the staggering financial figures are real people whose lives have been upended by these scams. Victims often lose their life savings, retirement funds, or even take on debt to invest in what they believe are legitimate opportunities. The emotional toll is equally devastating, with many victims experiencing shame, guilt, and depression.

Authorities urge the public to remain vigilant and skeptical of unsolicited investment offers, especially those involving cryptocurrency. Legitimate investment opportunities do not require immediate action or promise guaranteed returns.

The sentencing of Daren Li serves as a warning to those who seek to exploit the cryptocurrency boom for personal gain. As law enforcement agencies continue to crack down on these schemes, the hope is that fewer people will fall victim to these devastating scams.

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