Fei Liao, a 29-year-old Chinese national residing in San Gabriel, California, has been charged in connection with a scheme aimed at laundering proceeds from cryptocurrency investment scams and other fraudulent activities, announced U.S. Attorney Damien M. Diggs for the Eastern District of Texas.
Liao was taken into federal custody on May 3, 2024, and subsequently appeared before the court on May 20, 2024. During the proceedings, Liao waived arraignment and entered a plea of not guilty to the charges brought against him. The indictment accuses Liao of conspiring to commit wire fraud and money laundering.
Court documents reveal that Liao and his associates purportedly orchestrated the creation of shell companies and bank accounts to launder funds obtained from cryptocurrency investment scams, commonly referred to as "pig butchering," and other fraudulent schemes. Allegedly, the funds were then transferred to both domestic and international financial institutions.
The charges of conspiracy to commit wire fraud and conspiracy to commit money laundering each carry a maximum sentence of 20 years in federal prison.
"Pig butchering" scams typically involve scammers engaging with victims on dating platforms, social media, or through unsolicited messages, often posing as acquaintances. After building trust, the scammers persuade victims to invest in fraudulent cryptocurrency platforms, promising significant returns. However, victims soon find themselves unable to withdraw their funds, resulting in substantial losses.
It is essential to note that an indictment represents allegations, and the defendant is presumed innocent until proven guilty in a court of law beyond a reasonable doubt.
The investigation into this case is being conducted by the U.S. Secret Service, Tyler Resident Office.
