Fugitive Crypto Scammer Receives Maximum 20-Year Sentence

Daren Li, a dual citizen of China and St. Kitts and Nevis, was sentenced in absentia for his role in a $73 million cryptocurrency investment fraud scheme.

Published on Feb. 13, 2026

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A U.S. federal judge has sentenced Daren Li, a 42-year-old man holding dual citizenship in China and St. Kitts and Nevis, to the maximum 20-year prison term for his involvement in a sophisticated money laundering operation tied to a $73 million cryptocurrency investment fraud scheme. Li, who fled custody late last year, was convicted of conspiracy to commit money laundering and sentenced in absentia in the Central District of California.

Why it matters

This case highlights the growing threat of cryptocurrency-related scams, often linked to organized groups in Southeast Asia, that prey on vulnerable individuals and use psychological manipulation to extract life savings. It also underscores the challenges law enforcement faces in combating cross-border digital crimes and the need for global cooperation to dismantle these fraud networks.

The details

Li played a pivotal role in the money laundering process, instructing accomplices to establish U.S.-based bank accounts under fictitious business names to receive wire transfers from deceived individuals. The funds were then swiftly moved to cryptocurrency wallets under Li's control or that of his partners overseas, allowing the group to wash tens of millions in illicit proceeds. Li oversaw the conversions and distributions from locations including China, Cambodia, and the United Arab Emirates.

  • In May 2024, Li and co-defendant Yicheng Zhang were arrested at Atlanta's international airport upon arrival from the UAE.
  • In November 2024, Li entered a guilty plea, admitting his part in the elaborate fraud.
  • In December 2025, Li severed his electronic ankle monitor and fled, prompting authorities to declare him a fugitive.
  • On February 10, 2026, the court proceeded with sentencing Li in absentia.

The players

Daren Li

A 42-year-old man holding dual citizenship in China and St. Kitts and Nevis, who was sentenced to the maximum 20-year prison term for his involvement in a sophisticated money laundering operation tied to a $73 million cryptocurrency investment fraud scheme.

Yicheng Zhang

Li's co-defendant, who received a 46-month sentence in January 2026 for similar charges.

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What they’re saying

“Online fraudsters may hide behind borders and technology, but justice will pursue them relentlessly.”

— Bill Essayli, First Assistant U.S. Attorney (crowdfundinsider.com)

“Li's actions inflicted 'devastating financial and emotional harm' on victims nationwide, vowing continued efforts to dismantle these networks.”

— A. Tysen Duva, Assistant Attorney General (crowdfundinsider.com)

What’s next

As international law enforcement collaborates to locate Li—who reportedly owns property in Dubai—experts warn of the evolving nature of crypto scams. Restitution for victims remains pending, but the Justice Department has signaled that seized assets could aid recovery.

The takeaway

This high-profile conviction serves as a deterrent, illustrating how global cooperation can combat digital-age crime. However, with Li still at large, the pursuit continues, reminding investors to properly verify platforms as well as report suspicious solicitations promptly.