A man sentenced to 40 months in the US for involvement in cryptocurrency fraud, with the case involving millions of dollars

Odaily News The United States Attorney's Office for the Eastern District of Texas announced that a Chinese national, Fei Liao, has been sentenced to federal imprisonment for his role in laundering proceeds from cryptocurrency investment scams. He pleaded guilty to conspiracy to commit money laundering and was sentenced to 40 months in prison by Federal District Judge J. Campbell Barker on February 19, 2026. Liao was also ordered to forfeit over $2.3 million in seized funds and pay more than $2.8 million in restitution to victims. Law enforcement reminds the public that if they encounter similar scams, they can file a report with the Internet Crime Complaint Center (IC3), providing as much information as possible, including the name of the investment platform, cryptocurrency addresses, transaction hashes, bank account details, and contact information of the suspects, while also preserving communications and transaction records with the fraudsters.

It is reported that the case was announced by U.S. Attorney Jay R. Combs for the Eastern District of Texas. The investigation was conducted by the Tyler Resident Office of the United States Secret Service, with Assistant U.S. Attorney Robert Austin Wells prosecuting the case. Court documents reveal that Liao, along with others, facilitated the laundering of funds from cryptocurrency investment frauds, such as "Pig Butchering" scams, by setting up shell companies and bank accounts. These scams typically contact victims through social media, dating platforms, or unsolicited calls, build trust, and then lure them into investing in cryptocurrency. After victims transfer funds to accounts controlled by the scammers, fake platforms display high returns to encourage further investment, ultimately leaving victims unable to withdraw their funds and suffering significant losses.