A federal court in California has sentenced the head of a complex swindle that stole more than $73 million from victims to 20 years in prison. The technique, called “pig butchering,” used trust built through online interactions to get people to invest in fake crypto businesses.
Information About The Scam
Daren Li, 42, who holds citizenship in both China and St. Kitts and Nevis, ran the scheme with at least eight others. The organization created bogus websites and domains that appeared to be real cryptocurrency trading platforms to trick mostly American investors. The criminals first contacted their victims via social media and dating apps, pretending to be professionals or romantic interests to build long-term relationships.
Once they had earned people’s trust, the scammers convinced them to send money to accounts that the group controlled, offering big returns on crypto investments. Court records show that the victims remitted at least $73.6 million to bank accounts related to the defendants.
Of that, $59.8 million passed through U.S.-based shell corporations set up expressly for money laundering. Li acknowledged helping launder money from other crypto-related scams. He also talked about how the plan used dishonest methods to “fatten up” victims before taking their money, which is a common practice in pig slaughtering operations.
Legal Action and Sentencing
Li admitted in November 2024 that he was part of a plan to launder money. But in December 2025, he took off his electronic ankle monitor and ran away, making him a fugitive. A court in California’s Central District sentenced the person to 20 years in prison and 3 years of supervised release.
Li is the first defendant in this case to be punished, and his penalty establishes a precedent. His eight co-conspirators have already pleaded guilty and are waiting for their own hearings.
The U.S. Secret Service’s Global Investigative Operations Center is leading the ongoing investigation, with assistance from the El Camino Real Financial Crimes Task Force, the U.S. Marshals Service, and others. Officials stress the probe’s global reach, aiming to break up similar networks.
Official Reactions and Broader Implications
Assistant Attorney General A. Tysen Duva said of the case, “The Court’s sentence reflects the seriousness of Li’s actions, which caused terrible losses to victims all over the country.” Duva also said that the government would “work with our law enforcement partners around the world to make sure that Li comes back to the United States to serve his full sentence.”
This sentence comes at a time when there are many crypto frauds. Blockchain security company CertiK says that in January 2026, $370 million was stolen due to various crypto vulnerabilities. This was the highest monthly total in 11 months, and $311 million of that was due to phishing scams.
This is the worst loss since February 2025, when almost $1.5 billion was stolen, including a huge $1.4 billion attack on the Bybit exchange.
Experts say pig butchering methods are still evolving, combining social engineering with digital fraud to exploit weaknesses in the crypto market. The case shows how hard the U.S. government is working to stop cross-border financial crimes.
This could mean more aggressive charges in the future. People who have been victims of such frauds are strongly encouraged to report them to federal authorities immediately.
