A Chinese man was sentenced to 40 months in the U.S. for involvement in cryptocurrency scams, with the amount involved reaching several million dollars.

2026-02-20 01:53:20

Deep Tide TechFlow News, February 20 — According to the U.S. Department of Justice Eastern District of Texas Office, 31-year-old Chinese national Liao Fei has been sentenced to 40 months in federal prison for involvement in cryptocurrency investment scams and other fraudulent schemes related to money laundering activities.

Liao Fei admitted 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 information indicates that 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.

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