U.S. Nabs Two Chinese In $73-M Crypto Scam

US authorities have charged two Chinese nationals in a cryptocurrency scam that laundered at least $73 million from defrauded victims, the Justice Department announced, Brendan O’Boyle reported for Reuters.

Victims were tricked into depositing money into US bank accounts in the names of shell companies, with the funds laundered through US financial institutions to bank accounts in the Bahamas.

Officials arrested Yicheng Zhang in Los Angeles on Thursday, and an indictment unsealed in US District Court in California's central district later that day revealed the charges.

Daren Li, a dual citizen of China and St. Kitts and Nevis, was arrested at the Atlanta airport in April.

The US accused the two of participating in a cryptocurrency investment scam known as "pig butchering," a global billion-dollar industry. The defendants allegedly instructed co-conspirators to open US bank accounts in the names of shell companies.

Victims were then tricked into depositing money into these accounts, with the funds subsequently laundered through US financial institutions to bank accounts in the Bahamas.