California Judge Hands Down Maximum Sentence for $73M Crypto Scam Ringleader
A federal judge in California has sentenced Daren Li to the maximum 20 years in prison for his role in a $73 million cryptocurrency investment fraud. Li, a dual national of China and St. Kitts and Nevis, became a fugitive in December 2025 after cutting off his ankle monitor and disappearing.
The case is one of the largest 'pig butchering' prosecutions to reach sentencing in the U.S., built around Cambodia-based scam compounds that targeted American victims through spoofed trading platforms. Li pleaded guilty in November 2024 to conspiracy to commit money laundering tied to cryptocurrency fraud, admitting that at least $73.6 million in victim funds flowed into accounts he and his associates controlled.
The operation involved social engineering scams, with co-conspirators posing as tech support agents or romantic partners to convince victims to send money. Li's sentence is notable, as U.S. District Judge R. Gary Klausner imposed the harshest penalty available despite Li's guilty plea, suggesting the court viewed the operation's scale as exceptionally serious.
The case highlights the global reach of 'pig butchering' operations, with Cambodia becoming a hub for such scams. Industry data shows that social engineering scams accounted for nearly 41% of all cryptocurrency security incidents in 2025.