A federal judge in California on Monday sentenced Daren Li, a 42-year-old dual national of China and St. Kitts and Nevis, to the statutory maximum of 20 years in prison for his role in a $73 million cryptocurrency investment fraud.
The sentence was imposed in absentia - Li became a fugitive in December 2025 after cutting off his ankle monitor and disappearing.
The case is among 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.
What Happened
Li pleaded guilty in November 2024 to conspiracy to commit money laundering tied to cryptocurrency fraud. According to his plea agreement, co-conspirators in Cambodia contacted victims through social media, phone calls, and dating services.
After building trust through fake romantic or professional relationships - often over encrypted messaging apps - the group steered victims to spoofed cryptocurrency platforms designed to look legitimate. In other cases, co-conspirators posed as tech support agents and convinced victims to send money to fix nonexistent computer problems.
Li admitted that at least $73.6 million in victim funds flowed into accounts he and his associates controlled. Of that, roughly $59.8 million moved through U.S. shell companies set up to launder proceeds into cryptocurrency.
Eight co-conspirators have pleaded guilty so far. Li is the first defendant sentenced who directly received victim funds.
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Why It Matters
Cambodia has become a global epicenter for pig butchering operations. A TRM Labs report found that over $96 billion in cryptocurrency has flowed to Cambodia-linked companies since 2021, much of it tied to laundering and fraud.
Social engineering scams - fake investment offers, romance fraud, impersonation - accounted for nearly 41% of all cryptocurrency security incidents in 2025, according to industry data.
The maximum sentence is notable on its own. 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.
Li remains at large. The DOJ said it is working with the Secret Service, Homeland Security Investigations, U.S. Marshals Service, and international partners to locate and return him to custody.
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