(Reuters) – The U.S. Division of Justice introduced on Friday that it has indicted two Chinese language nationals on prices of a cryptocurrency rip-off that laundered at the very least $73 million from victims.
U.S. authorities arrested Zhang Yicheng in Los Angeles on Thursday, based on an indictment unsealed later that day within the U.S. District Courtroom for the Central District of California. Darren Li, a twin citizen of China and St. Kitts and Nevis, was arrested on the Atlanta airport in April.
The US accused the 2 of participating in a sort of cryptocurrency funding fraud generally known as pig butchering, which has develop into a worldwide multibillion-dollar business.
The defendants allegedly instructed their co-conspirators to open U.S. financial institution accounts within the identify of the shell firm.
Victims have been induced to deposit cash into these accounts on-line, and the funds have been laundered by U.S. monetary establishments into financial institution accounts within the Bahamas.
“Fraud within the digital forex markets takes many types and lurks in far-flung locations, however its perpetrators should not past the attain of the legislation,” U.S. Deputy Legal professional Common Lisa Monaco mentioned in an announcement. Ta.
Mr. Li and Mr. Zhang are each charged with conspiracy to commit cash laundering and 6 counts of worldwide cash laundering. If convicted, the defendants may resist 20 years in jail on every rely, based on the Justice Division.
