TYLER, Texas — A 29-year-old Chinese national, Fei Liao, of San Gabriel, California, has been indicted for allegedly participating in a scheme to launder millions of dollars from cryptocurrency investment scams and other fraudulent schemes in the Eastern District of Texas, according to U.S. Attorney Damien M. Diggs.
Liao was taken into federal custody on May 3, 2024. He pleaded not guilty to charges of conspiracy to commit wire fraud and conspiracy to commit money laundering on May 20, 2024. The indictment alleges that Liao and his accomplices used shell companies and bank accounts to launder proceeds from cryptocurrency investment scams, also known as “pig butchering”, and other fraudulent schemes. The laundered funds were then transferred to both domestic and international financial institutions. If convicted, each charge carries a maximum statutory sentence of 20 years in federal prison.
Court documents describe “pig butchering” fraud schemes as scams where perpetrators initiate relationships with victims on dating services or social media, often under the guise of a wrong number. After gaining the victim’s trust, the scammers introduce the idea of investing in cryptocurrency. Victims are then directed to fraudulent cryptocurrency investment platforms and applications, where they are persuaded to invest. Once the funds are transferred to the scammer-controlled accounts, the platform falsely shows significant investment gains, inducing victims to invest more. Ultimately, victims are unable to withdraw or recover their money, often suffering significant losses.
An indictment is merely an allegation, and Liao is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Secret Service, Tyler Resident Office is investigating the case, with Assistant U.S. Attorney Robert Austin Wells prosecuting. Victims of such scams are urged to report to www.IC3.gov, referencing “Pig Butchering PSA”, and provide as much information as possible, including names of investment platforms, cryptocurrency addresses, transaction hashes, bank account information, and contact information of suspected scammers.
