California Judge Hands Down Maximum Sentence to Fugitive Crypto Scammer
A California federal judge has sentenced Daren Li to the maximum of 20 years in prison for his role in a $73 million cryptocurrency investment fraud. The sentence was handed down in absentia, as Li became a fugitive after cutting off his ankle monitor and disappearing in December 2025.
Li's case is one of the largest 'pig butchering' prosecutions to reach sentencing in the US. These scams involve spoofed trading platforms that target American victims through social media, phone calls, and dating services. Co-conspirators build trust with victims before steering them to fake cryptocurrency platforms or convincing them to send money for nonexistent computer problems.
Li admitted that at least $73.6 million in victim funds flowed into accounts he and his associates controlled. Of this amount, roughly $59.8 million moved through US shell companies set up to launder proceeds into cryptocurrency. Eight co-conspirators have pleaded guilty so far, with Li being the first defendant sentenced who directly received victim funds.
Cambodia has become a global epicenter for 'pig butchering' operations, with over $96 billion in cryptocurrency flowing to Cambodia-linked companies since 2021. Social engineering scams accounted for nearly 41% of all cryptocurrency security incidents in 2025.