BlockBeats News, February 20 — The U.S. Department of Justice Eastern District of Texas announced that 31-year-old Chinese national Liao Fei has been sentenced to 40 months in federal prison for involvement in cryptocurrency investment fraud and money laundering activities. Liao Fei admitted to conspiracy to commit money laundering, involving millions of dollars. The U.S. court ordered him to forfeit over $2.3 million in seized funds and pay more than $2.8 million in restitution to the victims.
Liao Fei and his accomplices laundered proceeds from “pig-butchering” scams by setting up shell companies and bank accounts. These scams typically involve scammers contacting victims via social media, building trust, and then guiding them to invest in cryptocurrencies, ultimately preventing victims from withdrawing or recovering their funds.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Former Los Angeles County Sheriff's Deputy Convicted of Acting as Enforcer for Crypto Fraudster, Sentenced to Over 5 Years in Prison
The U.S. Department of Justice announced that former Los Angeles Deputy Sheriff Michael David Coberg was sentenced to 63 months in prison and ordered to pay $127,000 in restitution for assisting cryptocurrency fraudster Adam Iza in extortion and false arrest schemes. Coberg, who was employed by the LASD, participated in extorting victims and making false arrests, abusing his authority for personal gain.
区块客2h ago
Gemini Faces Class-Action Suit Over Prediction Market Pivot, Plummeting Stock Price
Gemini faces a class action lawsuit from shareholders alleging that the company misled investors about its business viability and concealed its shift to prediction markets, contributing to a significant decline in stock value.
Decrypt9h ago
CLARITY Act’s Stablecoin Yield Deal Near as SEC Redefines Tokens
Lawmakers and regulators are making progress on crypto policy, with a stablecoin yield proposal anticipated soon. The SEC and CFTC classified most crypto assets as non-securities, designating several as digital commodities.
CryptoFrontNews11h ago
80-Year-Old Scam Victim Lost $285,000 to Telecom Fraud, Files Lawsuit Against Charles Schwab After Funds Converted to Cryptocurrency
80-year-old investor George Chryssanthou fell victim to a telecom scam in January 2025, losing approximately $285,000. The scammers impersonated Microsoft technical support and induced him to transfer funds to a CEX account, which were subsequently converted to Bitcoin. He has filed a complaint with FINRA against Charles Schwab for failing to prevent the suspicious transfer.
GateNews13h ago
IPO Dreams Shattered! Gemini Hit with Class Action Lawsuit for "Misleading Investors," Stock Price Plummets 80% with 25% Layoffs and Exit from Multiple Countries
Gemini cryptocurrency exchange is facing its biggest crisis since its IPO, as it has been accused of providing false information in its listing documents, causing its stock price to plummet 80% and significant losses. The company has announced a 25% workforce reduction and withdrawal from multiple international markets, sparking serious market concerns about its operations. This incident may also impact the listing process of future crypto enterprises.
動區BlockTempo14h ago
Guizhou Police Crack Down on Virtual Currency Trading Fraud Case, Scammer Uses "Read-Only Wallet" to Steal 7118 USDT
Police in Wanshan District, Tongren City, Guizhou Province, China have cracked a virtual currency trading fraud case. The victim was defrauded of 7118 USDT, equivalent to over 50,000 yuan. The scammers used read-only wallets and cash displays to gain trust before quickly transferring assets. Police remind the public that virtual currency trading carries high risks and requires careful verification of wallet address authenticity.
GateNews14h ago
