Two individuals, Daren Li and Yicheng Zhang, have been arrested and charged with orchestrating a massive cryptocurrency laundering scheme. According to the Justice Department, the duo was involved in a complex operation that funneled over $73 million through US financial institutions, ultimately converting the funds to Tether (USDT).

The scheme, known as "pig butchering," involves scammers gaining the trust of victims and convincing them to transfer large sums of money, only to disappear with the funds. Lawmakers and regulators have expressed concern over the rise of such scams in recent months.

The alleged scheme involved victims sending millions of dollars to US bank accounts, which were then used to launder the proceeds. The funds were subsequently transferred to domestic and international bank accounts, with over $341 million in virtual assets passing through a single cryptocurrency wallet.

Li and Zhang face charges of conspiracy to commit money laundering and six counts of international money laundering, carrying a maximum penalty of 20 years in prison for each count. The Deputy Attorney General, Lisa Monaco, emphasized that cryptocurrency investment scams may operate across borders, but perpetrators will still face justice.

"The fraud scheme involved more than $73 million laundered through US financial institutions to bank accounts in The Bahamas, and converted to the virtual asset USDT, or Tether," the DOJ said. "A cryptocurrency wallet involved in the scheme received more than $341 million in virtual assets."

Cryptocurrency investment scams exploit the borderless nature of virtual currency and online communications to defraud victims, said Deputy Attorney General Lisa Monaco. While these scams may take on many forms and hide in many far-off places, their perpetrators aren't beyond the law's reach.