(Reuters) – U.S. authorities have charged two Chinese language nationals in a cryptocurrency rip-off that laundered not less than $73 million from defrauded victims, the Justice Division mentioned on Friday.
U.S. officers arrested Yicheng Zhang in Los Angeles on Thursday, in keeping with an indictment unsealed later that day in U.S. District Courtroom for the Central District of California. Daren Li, a twin citizen of China and Saint Kitts and Nevis, was arrested on the Atlanta airport in April.
The US has accused the 2 of being concerned in a sort of cryptocurrency funding rip-off referred to as hogwash that has change into a worldwide billion-dollar business.
The defendants allegedly instructed co-conspirators to open U.S. financial institution accounts within the identify of shell corporations.
Victims had been tricked on-line into depositing cash into these accounts – funds that had been then laundered into financial institution accounts within the Bahamas through US monetary establishments.
“Whereas crypto market fraud takes many types and hides in lots of distant places, its perpetrators should not past the attain of the legislation,” US Deputy Lawyer Basic Lisa Monaco mentioned in an announcement.
Li and Zhang are each charged with conspiracy to commit cash laundering and 6 counts of worldwide cash laundering. If convicted, the defendants face a most of 20 years in jail in every case, the Justice Division mentioned.
