A man has been sentenced to 40 months in prison in the United States for his involvement in a cryptocurrency scam involving millions of dollars.
PANews reported on February 20 that, according to the U.S. Department of Justice website, the United States Attorney's Office for the Eastern District of Texas announced that a Chinese man, Fei Liao, has been sentenced to federal prison for his involvement in laundering funds obtained through cryptocurrency investment fraud. 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 more than $2.3 million in seized funds and pay more than $2.8 million in restitution to victims.
The case, reportedly announced by U.S. Attorney Jay R. Combs for the Eastern District of Texas, was investigated by the Taylor Division of the United States Secret Service, with Assistant U.S. Attorney Robert Austin Wells prosecuting. Court documents show that Liao and others used shell companies and bank accounts to launder funds obtained through cryptocurrency investment scams such as "pig butchering." These scams typically contact victims through social media, dating platforms, or strangers via phone calls, establishing trust before enticing them to invest in cryptocurrencies. After victims transfer money to accounts controlled by the scammers, the fake platform displays high returns, enticing them to invest more, ultimately leaving victims unable to withdraw their funds and suffering significant losses.
Law enforcement reminds the public that if they encounter similar scams, they can report them to the Internet Crime Complaint Center (IC3) and provide information such as the investment platform name, encrypted address, transaction hash, bank account information, and the suspect's contact information. They should also keep records of communication and transfers with the scammers.
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