TechFlow News, February 20: According to the U.S. Attorney’s Office for the Eastern District of Texas, a 31-year-old Chinese national named Liao Fei was sentenced to 40 months in federal prison for laundering proceeds from 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 funds and pay more than $2.8 million in restitution to victims. Court documents indicate that Liao Fei and his co-conspirators laundered proceeds from “pig-butchering” scams by establishing shell companies and bank accounts. In such scams, fraudsters typically contact victims via social media, build trust, then lure them into cryptocurrency investments—ultimately rendering victims unable to withdraw or recover their funds.
