According to the U.S. Attorney’s Office for the Eastern District of Texas, a 31-year-old Chinese national, Liao Fei, has been sentenced to 40 months in federal prison for his role in money laundering related to cryptocurrency investment scams and other fraudulent schemes. Liao Fei pleaded guilty to conspiracy to commit money laundering, involving millions of dollars. The court ordered him to forfeit over $2.3 million in seized assets and pay more than $2.8 million in restitution to victims. Court records indicate that Liao Fei and his accomplices laundered proceeds from “pig butchering” scams by establishing shell companies and bank accounts. These scams typically involve fraudsters contacting victims via social media, building trust, and then guiding them to invest in cryptocurrencies—ultimately preventing victims from withdrawing or recovering their funds.
Chinese national sentenced to 40 months in U.S. for crypto fraud involving millions
TechFlowShare
Summary
Liao Fei, a 31-year-old Chinese national, was sentenced to 40 months in a U.S. federal prison for his involvement in a cryptocurrency investment scheme that involved millions in fraud and money laundering. Liao pleaded guilty to conspiracy to launder money, and the court ordered him to forfeit over $2.3 million and pay $2.8 million in restitution. The case underscored the risks inherent in liquidity and crypto markets, as scammers used shell companies to siphon funds from victims via social media. The sentencing occurs as global regulators, including the EU’s MiCA (Markets in Crypto-Assets Regulation), move to strengthen oversight to combat financial crime.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.