TYLER, Texas - A Chinese national living in California has been sentenced to federal prison for laundering millions of dollars connected to cryptocurrency investment scams that targeted victims nationwide, federal prosecutors announced.
Fei Liao, 31, of San Gabriel, California, pleaded guilty to conspiracy to commit money laundering and was sentenced to 40 months in federal prison by U.S. District Judge J. Campbell Barker in the Eastern District of Texas. The court also ordered Liao to forfeit more than $2.3 million in seized currency and pay over $2.8 million in restitution to victims who transferred money into accounts connected to the scheme.
According to court records, Liao and co-conspirators created shell companies and opened bank accounts used to launder proceeds from cryptocurrency confidence scams commonly referred to as “pig butchering” schemes. Prosecutors said scammers typically contacted victims through dating platforms, social media, or unsolicited messages, gradually building trust before encouraging victims to invest in fraudulent cryptocurrency opportunities.
Victims were shown false investment gains on fraudulent platforms, prompting additional deposits. Authorities said victims ultimately were unable to withdraw their funds and suffered substantial financial losses.
The investigation was conducted by the U.S. Secret Service Tyler Resident Office and prosecuted by Assistant U.S. Attorney Robert Austin Wells.
Federal officials encourage anyone who believes they may be a victim of similar fraud to file a report with the FBI’s Internet Crime Complaint Center at www.IC3.gov and include detailed information about suspected scammers, financial transactions, and communications related to the scheme.
