BlockBeats News, February 20th. The U.S. Department of Justice’s Eastern District of Texas revealed that a 31-year-old Chinese national, Liao Fei, was sentenced to 40 months in federal prison for his involvement in cryptocurrency investment fraud and money laundering. Liao Fei pleaded guilty to conspiracy to commit money laundering involving millions of dollars. The U.S. court ordered him to forfeit over $2.3 million in seized funds and pay over $2.8 million in restitution to the victims.
Liao Fei and his accomplices used shell companies and bank accounts to launder the proceeds of the “pump-and-dump” scam. Such scams typically involve fraudsters contacting victims through social media, establishing trust, persuading them to invest in cryptocurrency, and ultimately leaving victims unable to withdraw or recover their funds.
